UNIVERSITY 

OF  CALIFORNIA 

LOS  ANGELES 


SCHOOL  OF  LAW 
LIBRARY 


LOUISIANA  LAW 

....OF.... 

OIL  AND  GAS 


JURISPRUDENCE,  STATE  AND  FEDERAL; 

STATUTES;  FORMS;  RULES  OF  THE 

DEPARTMENT  OF  CONSERVATION 

COMPLETE 


By  GEORGE  G.  RIMICK 
OFtTHE  SHREVEPORT,  LA.,  BAR 


PUBLISHED  BY 

F.  F,  HANSELL  &  BRO.,  Ltd. 

NEW  ORLEANS 


r 


COPYRIGHT 

1922 
F.  F.  HANSELL  fie  BRO..  Ltd. 


(7 


PREFACE 


This  volume  is  offered  to  the  public  with  the  hope  that 
it  will  be  of  value  not  only  to  lawyers  but  to  others  interested 
in  the  oil  and  gas  business. 

The  arrangement  is  in  the  form  of  a  digest-text  in 
which  an  attempt  is  made,  where  possible,  to  give  a  con- 
nected statement  of  the  law  on  a  given  point,  embracing 
the  principles  announced  in  the  various  decisions  of  the 
courts.  And  after  a  review  of  the  cases,  a  compilation  of 
statutes  is  given,  followed  by  the  rules  of  the  Department  of 
Conservation  relative  to  drilling  operations,  then  some  few 
"forms,  a  table  of  cases  and  index. 

A  report  of  the  case  of  Watkins  v.  Atlanta  &  Shreve- 
port  Oil  &  Gas  Co.,  is  appended,  as  this  case  has  been  re- 
ferred to  frequently  and  even  cited  by  the  Supreme  Court, 
but  has  not  been  officially  reported. 

Several  sections  have  also  been  devoted  to  a  general 
summary  of  the  corporation  laws,  blue  sky  law  and  other 
matters  of  interest  to  practitioners  of  other  states  and  others 
engaged  in  the  oil  business. 

GEORGE  G.  DIMICK. 
Shreveport,  Louisiana,  May  15th,  1922. 


TABLE  OF  CONTENTS 


Section  •  Page 

1.  Introductory  and  Historical 1 

2.  Oil  and  Gas — Legal   Status    6 

3.  Vagrant    and    Fugitive    Character — animals 

ferae   naturae    9 

4.  Must  be  reduced  to  possession 10 

5.  As  part  of  the  realty 11 

6.  As  fruits  of  land 12 

7.  Rights  of  owner  of  surface 12 

8.  Severance,   Exceptions  and   Reservations...  13 

9.  Ownership  of  Minerals — Public  Lands 15 

10.  Co-owners    17 

11.  Adjoining  Landowners   18 

12.  Rights  of  Usufructuary  19 

13.  Rigth-of-way    20 

14.  Rights   of   Possessors  and   Tres- 

passers      21 

1 5.  Police   Power    22 

16.  Proof  of  ownership  of  and  right  to  minerals 23 

17.  Acquisition  of  minerals  and  mineral  rights 23 

18.  Lease — In  general 25 

19.  How    acquired    26 

20.  Form  of  contract  27 

21.  The  Lessor    27 

22.  The   Lessee    .  29 


VI  TABLE   OF   CONTENTS 

Section  Page 

23.  Public   lands    31 

24.  Lands  of  Minors  and  Interdicts 32 

25.  Husband'  and  wife    32 

26.  Co-owners    33 

27.  Construction  and  Interpretation   35 

28.  Term    37 

29.  Assignment — Third    Parties,   etc 39 

30.  Divisibility 41 

31.  Consideration    43 

32.  Protestative  condition    47 

33.  Potestative   condition — concluded    60 

34.  Rentals  and  payments  62 

35.  Tender  of  payments  and  perf omance 65 

36.  Default  in  payments,  performance,  etc 67 

37.  Extension     68 

38.  Termination    69 

39.  Termination  by  effect  of  law 69 

40.  Termination  by  failure  to  comply  with  the  terms 

of  the  contract 70 

41.  Abandonment    71 

42.  Damages  for  non-performance  and  for  usurpation, 

etc 73 

43.  Mortgage    74 

44.  Warranty    75 

45.  Mineral    Rights.      Sale,    exception,    reservation,    prescrip- 

tion,   etc 76 

46.  Options    80 

47.  License    

48.  Litigious  Rights    83 


TABLE  OF  CONTENTS  VII 

Section  Page 

49.  Development — In   General    84 

50.  As~a  consideration 85 

51.  Producing  other  substance  than  oil  and  gas. .  86 

52.  Diligence,  sufficiency,  etc. 87 

53.  What  constitutes)  commencement  of  opera- 

tions      92 

54.  Amount  of  production   92 

55.  Time  between  cessation  and  resumption  of 

operations    93 

56.  Offsets    94 

57.  Pumps,  etc 94 

58.  Drilling  Contracts    95 

59.  Waste  Oil,  etc. — Damages  from  same 97 

60.  Liens,  etc 98 

62.  Conversion  of  oil  99 

63.  Sale  of  oil  100 

64.  Storage,  piping,  transportation,  etc 103 

65.  Conservation 107 

66.  Lesion,  fraud,  error,  etc 116 

67.  Specific  performance   117 

68.  Procedure    116 

69.  Sequestration    124 

70.  Personal  Injuries — Damages    127 

71.  Inspection  of  oils,  explosive  oils,  etc 131 

72.  Taxation    132 

73.  Gas — Rights  and  Liabilities  in  connection  with  its  use  and 

production    136 

74.  Corporations    141 

75.  Blue  Sky  Law   146 


VIII  TABLE   OF   CONTENTS 

Section  Page 

76.     Trusts   147 

?7.     Partnerships    148 


APPENDIX  "A"— Statutes,  etc. 

Act  168  of  1920     Cancellation  of  leases  149 

Act    60  of  1920     Procedure  in  oil  and  gas  cases 150 

Act    31  of  1920     Severance   Tax    153 

Act    81  of  1921     Gasoline  Tax    160 

Act    53  of  1920    Storage   of  Oil    168 

Act     71  of  1906     Waste 170 

Act  190  of  1910    Conservation—Waste    173 

Act  283  of  1910    Waste    176 

Act  268  of  1918    Waste    180 

Act  270  of  1918     Purchasers  of  Gas   184 

Act  127  of  1912    Conservation     188 

Act    66  of  1916     Conservation 203 

Act  105  of  1918     Conservation    205 

Act    73  of  1920    Conservation— Purchasers   of   Oil 208 

Act  250  of  1920    Conservation    214 

Act    36  of  1906     Pipe  Lines  as  Common  Carriers   223 

Act    39  of  1906     Pipe  Lines    224 

Act    45  of  1921     Pipe  Lines  Crossing  Levees 227 

Act    76  of  1920     Pipe  Lines  as  Common  Carriers  228 

Act  142  of  1918     Lease  of  School  Lands 239 

Act     30  of  1915     Lease  of  State  Lands 240 

Act    21  of  1915     Lease  of  State  Lands 243 

Act     29  of  1915     No  Injunction  against  Lessee  of  State 244 

Act  268  of  1908    Lease  of  Caddo  Levee  Board  Lands 245 

Act  192  of  1916  Lease  of  Lands  of  Minors..  247 


TABLE   OF   CONTENTS  IX 

Page 

Act  116  of  1920     Lease  Lands  of  Minors  and  Interdicts 248 

Act  149  of  1920    Cross  Lake   Lands 249 

Act  232  of  1916     Drilling  Contracts   250 

Act  232  of  1910     Mortgage  of  Leases 254 

Act     70  of  1921     Municipalities    and     Parishes     may    acquire 

gas  plants,  etc 256 

Act    37  of  1917     Damage  to  Gas  Plants,  etc 261 

Act  208  of  1916     Diverting  Gas    262 

Act    63  of  1921     Diverting   Gas 263 

Act  213  of  1906     Contamination  of  Waters   266 

Act  183  of  1910     Contamination  of  Waters    267 

Constitutional   Provisions,   Constitution  of   1921 269 


APPENDIX  "B"— Rules  and  Regulations. 

Of  the  Department  of  Conservation 271 

Rule  No.  Page 

1  Waste    271 

2  Waste  defined    271 

3  Gas  to  be  confined  to  original  stratum 271 

4  Methods  of  prevention  272 

5  Notice  of  intention  to  drill 272 

6  Log  of  well  required 272 

7  Plugging  dry  and  abandaned  wells 272 

8  Proper  anchorage  required   273 

9  Equipment  for  conserving  gas  to  be  provided 273 

10  Separate  slush  pit  to  be  provided 273 

11  Producing  oil  and  gas  from  different  strata 273 

12  Strata  to  be  sealed  off  .  274 


X  TABLE   OF   CONTENTS 

Rule  No.  Page 

13  Mud  laden  fluid  to  be  applied 274 

14  Fresh  water  to  be  protected   274 

1 5  Gas  to  be  separated  from  oil 274 

16  Separating  device  to  be  installed 274 

17  Notification  of  fires,  breaks  in  line,  etc 275 

18  Drilling  record  to  be  kept  at  well 275 

19  Conservation  Agents  to  have  access  to  wells 275 

20  Notice  to  observe  rules   276 

21  Casing  to  be>  used  in  Ouachita,  Morehouse,  Richland  and 

Union   Parishes    276-281 

22  Protection  of  shallow  strata  in  Claiborne 277 

23  Capacity  of  gas  wells  not  to  be  taken 277 

24  Flambeau  lights  unlawful    277 

25  Gas  to  be  metered 277-282 

26  Burning  gas  in  day    278 

27  Disposition  of  waste  from  wells 278 

28  Reports  required   278 

29  Carbon  plants 278 

30  Extracting  gasoline   from   gas 279 

31  Taking  control  of  abandoned  and  other  wells 279 

32  Agents  to  assist  in  enforcement  of  rules 280 

33  Additional  rules  to  be  passed  from  time  to  time 280 

34  Notice  of  intention  to  plug  well 281 

35  Repeal  of  inconsistent  rules   281 

36  Drilling    in    Ouachita,    Union,    Morehouse    and    Richland 

Parishes    283 

37  Drilling    in    Ouachita,    Union,    Morehouse     and     Richland 

Parishes    284 

38  ( Inoperative) 


TABLE   OF   CONTENTS  XI 

Page 

39  Standard  pressure  base   285 

40  Swabbing  wells    286 

41  Drilling  in  Bossier  and  Webster  Parishes 287 

42  Use  of  gas  in  Ouachita,  Morehouse  and  Union 288 

Casing  to  be  used  in  drilling 281 


APPENDIX  "C"— Forms 

Page 

Sale  of  Mineral  Rights  290 

Oil  and  Gas  Lease  292 

Assignment   of   Lease    298 


APPENDIX  "D"— Unreported  Decision. 

R.  F.  Watkins,  et  al.  v.  Atlanta  &  Shreveport  Oil  &  Gas  Co. 

(Jan.  6,   1913)    302 


LOUISIANA  LAW 

of 

OIL  and  GAS 


Sec.   1.  Introductory  and  Historical. 

The  history  of  the  oil  industry  in  Louisiana,  so  far  as  dis- 
closed by  the  statutes  and  jurisprudence  of  the  State,  had  its 
beginning  about  fifty  years  ago  when  the  Supreme  Court  was 
called  upon  to  interpret  a  contract  entered  into  for  the  develop- 
ment of  certain  mineral  lands  in  Calcasieu  Parish.  The  case 
referred  to  is  that  of  Escoubas  et  al.  v.  Louisiana  Petroleum 
&  Coal  Oil  Company.,  22  A.,  280,  decided  April  1870,  and 
the  contest  involved  the  forfetiture  of  a  certain  oil  "lease" 
and  raised  other  vexations  points  some  of  which  are  still 
the  subjects  of  discussion  and  litigation. 

It  appears  that  the  lessees  paid  the  sum  of  $20,000  for 
the  privilege  of  certain  wildcat  explorations,  and  promised 
a  royalty  of  one-half  of  the  oil  produced,  which  shows  that 
since  that  early  date,  there  have,  perhaps,  been  more  decided 
changes  in  the  customs  of  development  than  in  the  laws  by 
which  it  is  guided. 

The  lessee  drilled  to  a  depth  of  1230  feet,  and  encountered 
nothing  but  the  desiccated  earth.  But  at  a  depth  of  about 
four  hundred  feet  the  drill  penetrated  a  bed  of  crystallized 
sulphur,  and  it  is  interesting  to  recall  that  this  unexpected 
discovery  resulted  in  a  new  industry  in  Louisiana,  which  as  a 
consequence,  has  become  one  of  the  foremost  sulphur  pro- 
ducing sections  of  the  world,  this  subterranean  wealth  being 
extracted  by  an  original  process  evolved  from  the  necessities 
of  the  occasion. 


2  INTRODUCTORY  AND  HISTORICAL 

The  question  of  the  rights  of  the  lessees  to  this  unexpected 
substance  was  referred  to  the  courts  and  will  be  discussed 
at  a  later  point,  but,  in  passing,  it  might  be  well  to  call  at- 
tention to  this  illustration  of  the  advisability  of  protecting  a 
lessee,  who  drills  in  unknown  regions,  in  the  discovery  of 
unexpected  substances,  the  hope  of  finding  which  has  always 
at  least  appealed  to  the  imagination,  and  not  without  foun- 
dation as  this  case  illustrates. 

So  far  as  disclosed  by  the  dry  records  of  the  law,  the  his- 
tory of  the  oil  industry  in  Louisiana  remains  unwritten  from 
the  foregoing  date  until  about  the  year  1901,  when,  shortly 
after  the  discovery  of  oil  at  Spindle  Top  in  Texas,  we  find 
the  efforts  of  the  pioneers  in  Louisiana  rewarded  by  the  dis- 
covery of  oil  in  South  Louisiana  at  Jennings  and  elsewhere. 
This  discovery  is  referred  to  by  the  Supreme  Court  in  119 
La.  793,  where  this  matter-of-fact  allusion  is  made  to  the 
beginning  of  the  greatest  wealth  producing  industry  of  the 
State : 

"At  the  height  of  the  excitement  created  by  the  discovery 
of  oil  at  Beaumont,  Texas,  indications  similar  to  those  at 
the  celebrated  Spindle  Top  were  observed  at  Prairie  Manou, 
about  90  miles  from  Beaumont,  and  it  caused  a  great  excite- 
ment. Speculators  began  taking  leases  on  the  lands  of  the 
neighborhood,"  and  so  forth. 

From  that  time  on,  nearly  every  volume  of  the  decisions 
of  the  Supreme  Court  has  contained  the  decisions  of  oil  and 
gas  litigation,  the  initial  cases  from  South  Louisiana  being 
some  of  the  hardest  fought  legal  battles  in  the  history  of  the 
State. 

The  celebrated  Caddo  Field,  near  Shreveport,  was  dis- 
covered after  the  South  Louisiana  fields,  and  since  that  time 


STATUTES  3 

every  few  years  has  seen  the  development  of  some  new  pool 
in  North  Louisiana  near  Shreveport,  including  the  celebrated 
Gusher  Bend,  Pine  Island,  Bull  Bayou,  DeSoto,  Red  River, 
Haynesville,  Homer,  and  Bossier  fields,  with  a  consequent 
increase  of  litigation  and  jurisprudence.  The  first  case 
decided  from  North  Louisiana  was  that  of  Murray  v.  Barn- 
hart,  117  La.  1023,  decided  in  1906  and  involved  a  lease  made 
in  1901. 

So  far  as  the  statutory  law  of  the  State  is  concerned,  the 
lawmakers  have  been  rather  lax  in  dealing  with  these  great 
natural  resources  and  the  industries  engaged  in  their  de- 
velopment. 

The  discovery  of  oil  in  Louisiana  found  the  State  with  no 
mining  laws,  as  that  industry  was  unknown  in  this  section. 
The  few  antiquated  sections  of  the  Codes  and  statutes  which 
might  apply  were  evidently  casual  and  accidental  expressions 
and  illustrations  enacted  without  the  remotest  idea  that  they 
would  ever  apply  to  the  production  of  oil  and  gas.  As  the 
Supreme  Court  says: — "Mining  is  a  new  industry  in  this 
State."  (Spence  v.  Lucas  et  al,  138  La.  763). 

"And  the  (Civil)  Code  is  silent  as  to  such  contracts 
(mineral  leases) ;  for  the  reason,  doubtless,  that  minerals 
under  and  within  the  soil  of  Louisiana  were  not  in  the  con- 
templation of  the  lawmakers  at  the  time  that  the  (Civil)  Code 
was  adopted.  The  Legislature  up  to  this  time  has  been 
silent  upon  the  subjct  of  mineral  rights  and  contracts." 
Rives  et  al.  v.  Gulf  Refining  Co.  of  Louisiana,  133  La.  178. 

And  again:  "*  *  *  The  difficulty  with  the  articles  of 
the  Code  of  Practice  is  that  they  were  framed  at  a  time  when 
the  nature  and  existence  of  oil  under  the  soil  of  this  State 
was  not  supposed  or  known,  and  the  laws  were  not  therefore 


4  EARLY  CONTRACTS 

framed  to  meet  such  things  and  the  conditions  surrounding 
them."    Natalie  Oil  Co.  v.  La.  Ry.  &  Nav.  Co.,  137  La.  710. 

The  result  has  been  that  much  has  been  left  to  interpreta- 
tion and  court-made  law,  because,  as  shown  further  on,  the 
statutory  enactments  have  been  few  and  far  between,  with 
a  consequent  loss  on  the  part  of  the  State  and  the  land 
owners  and  independent  operators,  who  are  the  ones  who 
have  had  cause  to  complain  about  this  inactivity. 

The  cupidity  of  some  lessees  and  land  owners  also  created 
a  feeling  of  suspicion  and  hostility  betwen  lessors  and  lessees 
for  sometime,  because  parties  on  both  sides  have  frequently 
sought  to  take  advantage  of  one  another  by  ambiguous  and 
obscurely  drawn  contracts,  evidently  under  the  impression 
that  at  a  later  timd  benefits  might  flow  from  clauses  not 
thoroughly  understood  at  the  time  of  contracting.  In  the 
case  of  Cook  v.  Gulf  Refining  Co.,  127  La.  592,  the  Supreme 
Court  referred  to  a  lease  as  being  poorly  and  obscurely 
drawn,  and  many  cases  show  the  difficulty  for  the  Courts 
to  interpret  such  contracts.  And  in  one  of  the  earlier  cases 
(Jennings-Heywood  v.  Houssiere-Latreille,  119  La.  844) 
the  court  quoted  approvingly  the  case  of  Ohio  Oil  Company 
v.  Delmore,  (Ind.  Sup.)  73  N.  E.  908,  where  it  was  said: 

"Whether  it  proceeds  from  design  of  crafty  speculators  in 
oil  and  gas  leases  to  enshroud  their  contracts  with  doubtful, 
ambiguous  and  absurd  provisions,  as  a  means  of  promoting 
their  interests,  or  whether  it  comes  from  a  custom  in  the 
rural  districts  of  employing  unskilled  draftsmen,  it  is  a  not- 
able fact  that  few  subjects  of  contract  contribute  to  the  courts 
an  equal  proportion  of  written  agreements  for  interpreta- 
tion." 

Some  of  the  original  misunderstanding  of  the  oil  industry 


OIL  INDUSTRY  5 

in  Louisiana  are  shown  by  the  expressions  of  the  Supreme 
Court  in  the  case  of  J.  M.  Guffey  Petroleum  Co.  v.  Murrell, 
Tax  Collector,  et  al,  127  La.  466,  and  while  this  case  was 
decided  several  years  ago,  there  is  no  question  that  the  re- 
marks still  apply  in  some  instances,  and  the  Court's  ex- 
pressions show  the  advisability  of  a  better  understanding 
between  land  owners,  producers,  and  State  authorities.  The 
Court  said,  in  discussing  the  applicability  to  the  oil  industry 
of  certain  Constitutional  tax  exemptions  in  favor  of  mining 
industries : 

"They  (the  law  makers),  did  not  have  in  mind  oil  wells 
and  oil  fields  which  are  temporary  and  evanescent  in  their 
nature;  there  is  nothing  permanent  about  them.  It  is  evident 
that,  if  they  had  actually  had  oil  fields  in  mind  in  framing 
the  provisions  of  Article  230  (of  the  Constitution  of  1898) 
such  would  not  have  been  brought  within  the  exemption 
for  the  simple  reason  they  afford  employment  to  compar- 
atively very  few,  they  are  but  a  little  benefit  to  the  State.  The 
owners  resist  every  raise  made  in  the  assessment  of  their 
property,  and,  if  that  does  not  avail,  they  seek  to  cloak  them- 
selves with  Article  230.  The  business  is  of  such  temporary 
character  that  by  the  time  an  increase  can  be  made  in  the 
assessment,  the  property  has  begun  to  wane  in  value.  Not- 
withstanding the  enormous  quantities  of  oil  produced  at  the 
oil  field  in  question,  not  enough  population  has  been  gathered 
there  to  make  even  an  incorporated  village;  there  are  no 
works  of  permanent  improvement  found  there;  and  since  the 
production  has  greatly  decreased  it  is  a  dreary  place,  and 
in  a  few  more  years  will  be  a  worthless  one.  Contrast  this 
locality  with  Birmingham  and  Pittsburg  and  places  where 
there  are  mines  in  the  proper  and  usual  meaning  of  the 


6  LEGAL  STATUS 

term.  It  is  shown  in  the  testimony  that  although  the  plain- 
tiff's production  of  oil  was  at  times  as  high  as  29,000  bbls. 
per  month,  they  actually  failed  to  prove  that  as  many  as  five 
hands  were  continuously  employed  by  them",  and  so  forth. 

It  will  readily  be  admitted  that  conditions  at  this  time  are 
not  quite  so  bad  as  pictured,  and  much  helpful  legislation 
has  been  enacted  since  1918;  and  that  a  better  understand- 
ing is  coming  about  is  shown  by  the  expression  of  the  Court 
in  Dickinson  v.  Texana  Oil  &  Refining  Co.,  144  La.  489, 
where  it  was  said: 

"The  business  of  developing  the  tract  of  land  for  oil  and 
gas  is  one  requiring  special  knowledge  and  experience,  exer- 
cise of  good  judgment  and  the  handling  of  large  capital." 

Sec.  2.  Oil  and  Gas — Legal  status. 

In  the  case  of  J.  M.  Guffey  Petroleum  Co.  v.  Murrell, 
Tax  Collector,  127  La.  466,  certain  oil  producers  claimed 
exemption  from  certain  taxes  by  reason  of  the  provision  of 
the  State  Constitution  exempting  from  taxation  mining 
pursuits.  The  Supreme  Court  held  that  boring  for  oil  was 
not  a  "mining  operation",  nor  was  the  production  of  oil 
from  flowing  or  pumping  wells  "mining",  and  that  oil  and 
mineral  waters  were  not  minerals  within  the  intendment  of 
the  Constitution,  nor  within  the  technical  or  scientific  sense 
nor  the  ordinary  acceptance  of  the  term,  on  the  same  theory 
that  mineral  waters  are  not  classified  as  minerals.  Upon 
application  for  a  rehearing,  however,  the  court  said:  "We 
may  concede  the  contention  *****  that  scientifically 
speaking  petroleum  is  a  mineral  and  that  its  extraction  from 
the  bowels  of  the  earth  is  a  mining  operation.  But  petroleum 
is  a  substance  of  a  peculiar  character  and  differes  in  many 
respects  from  coal  and  other  minerals  which  have  a  fixed 


OIL  AS  MINERAL,  7 

status.  Petroleum  also  requires  an  entirely  different  process 
of  mining,  so  called.  As  late  as  1897  it  was  deemed  necessary 
to  pass  an  Act  of  Congress  to  class  petroleum  as  a  mineral 
in  the  sense  of  the  mining  laws  of  the  United  States.  Act  Feb. 
llth,  1897,  C.  216,  29  Stat.  526;  Sec.  2333  Rev.  St.  (U.  S. 
Comp.  St.  1901,  P.  1434.)" 

"In  1898  no  oil  or  gas  wells  existed  in  the  State  of  Lou- 
isiana, and  it  was  not  until  1910  that  oil  and  gas  were  classed 
with  'other  minerals'.  Act.  172  and  196  of  1910." 

But  the  Court  adhered  to  its  view  that  mineral  oil  and 
gas,  as  well  as  minera!  waters,  were  not  contemplated  by 
the  Constitution  in  referring  to  mining  operations,  and  that 
exemptions  are  strictly  construed. 

The  article  of  the  Constitution  (230)  referred  to  read: 
"There  shall  also  be  exempt  from  *  *  *  *  taxes  *  *  *  * 
the  capital,  machinery  and  other  property  employed  in  min- 
ing operations."  And  this  Section  of  the  Constitution  was 
afterwards  amended  so  as  to  entirely  omit  the  exemption. 

See  Constitution  of   1898,   1913  and   1921. 

In  1912,  in  the  case  of  Etchison  Drilling  Co.  v.  Flournoy, 
Tax  Collector,  131  La.  442,  which  was  another  case  deal- 
ing1 with  taxation,  the  question  as  to  whether  or  not  oil 
and  gas  are  minerals  was  considered  by  the  Court.  After 
reviewing  the  acts  of  the  legislature,  particularly  Acts  144 
of  1908,  154  of  1910,  172  of  1910,  196  of  1910  and  261  of 
1910,  and  the  Report  of  the  Conservation  Commission  of 
1910,  the  Court  said:  "From  the  above  summary  of  the 
laws  of  1908  and  1910,  all  referring  to  the  subject  of 
minerals,  gas,  oil,  etc.,  we  are  forced  to  the  conclusion  that 
the  Legislature  has  now  classified  oil  and  gas  as  minerals, 
and  those  who  are  engaged  in  extracting  them  from  the 


8  OIL  AS  MINERAL 

earth  to  be  engaged  in  mining  pursuits.  Such  Classification 
is  binding  upon  the  Courts  *  *  *  ".  And,  later,  "*  *  *  we 
are  constrained  to  hold  the  production  of  oil  to  be  a  mining 
pursuit  *  *  *  ";  and  as  the  question  before  the  Court  was 
the  constitutionality  of  an  act  taxing  a  mining  pursuit,  which 
the  Constitution  at  the  time  of  the  passage  of  the  act  ex- 
empted from  taxation,  the  Court  held  the  act  to  be  null  and 
void.  The  Syllabus  says: 

"The  legislature  has  now  classed  oil  and  gas  among 
minerals  of  this  state;  and  persons  engaged  in  producing 
these  minerals  are  following  a  mining  pursuit.  Act.  No. 
144  of  1908;  Act  No.  154  of  1910;  Act  No.  172  of  1910; 
Act  No.  196  of  1910.  Act  254  of  1910." 

It  might  be  added  that  since  1910  many  other  acts  have 
been  passed  which  consider  oil  and  gas  as  minerals,  and  the 
following  case  sets  the  matter  at  rest : 

"Whatever  may  have  been  thought  of  oil  or  natural 
gas  at  one  time,  it  is  now  established  beyond  any  question 
that  oil,  or  petroleum  and  natural  gas  are  minerals  and 
judicially  must  be  so  treated."  Rives  et  al.  v.  Gulf  Refining 
Co.  of  Lo.  133  La.  178. 

The  Employers'  Liability  Act.  (No.  20  of  1914)  states 
that  for  the  purposes  of  said  act  "Mine"  means  any  opening 
into  and  beneath  the  surface  of  the  earth  for  the  purpose 
of  extracting  any  mineral  or  minerals,  and  all  underground 
working,  slopes,  etc.,  and  includes  also  the  appurtenant 
structures  at  or  about  the  openings  of  a  mine  and  any  ad- 
joining workplace  where  the  material  from  a  mine  is  stored 
or  prepared  for  use  of  shipment.  And  the  act  also  goes 
further  and  expressly  includes  persons  employed  in  "The 


VAGRANT   CHARACTER  9 

operation,  construction,  repair,  removal,  maintenance  and 
demolition  of  *  *  *  *  oil,  gas,  sulphur, '  salt  and  other 
wells  *  *  *  ." 

In  DeMoss  v.  Sample,  143  La.  243,  it  was  said  that  "oil 
and  gas  in  place  are  minerals." 

Sec.  3.  Vagrant  and  Fugitive  Character — animals 
ferae  naturae. 

Courts  will  take  judicial  notice  of  the  vagrant  character 
of  petroleum,  and  that  an  oil  well  will  draw  its  product  from 
an  indefinite  distance,  and  in  time  exhaust  a  large  space. 
Wettengal  v.  Gornley  160  Pa.  559,  28  Atl.  934,  40  Pen. 
St.  Rep.  733.  Cited  in  Jennings-Heywood  Oil  Syndicate  v. 
Houssier-Latreille  Oil  Co.  et  al  119  La.  793. 

They  are  analogous  to  animals  ferae  naturae  and  are 
vagrant  and  fugitive  products: 

Rives  v.  Gulf  Refining  Company  of  Louisiana,  133  La., 
178,  citing  Ohio  v.  Indiana,  177  U.  S.  190  and  Brown  v. 
Spillman,  155  U.  S.  665.  Caddo  Oil  &  Refining  Co.  v.  Pro- 
ducers Oil  Co.  134  La.  701;  DeMoss.  Sample,  143  La.  243; 
Hanby  v.  Texas  Co.,  140  La.  189;  Higgins  Oil  &  Fuel  Co. 
v.  Guaranty  Oil  Co.,  145  La.  233. 

"Oil  and  gas  have  no  fixed  situs  under  a  particular  por- 
tion of  the  earth's  surface  within  the  area  where  they  obtain. 
They  have  the  power,  as  it  were,  of  self-transmission." 

Natalie  Oil  Co.  et  al  v.  Louisiana  Ry.  &  Nav.  Co.  137  La. 
706. 

But  in  Frost-Johnson  Lbr.  Co.  v.  Sailings,  149  La. — .'  the 
comparison  of  oil  and  gas  with  animals  farae  naturae  is  re- 


10  POSSESSION 


ferred  to  as  "unfortunate",  and  the  case  also  refers  to  an 
expression  in  Higgins  Oil  &  Fuel  Co.  v.  Guaranty  Oil  Co., 
145  La.  233,  to  the  effect  that  "The  analogy  between  the 
subteranean  oil  and  subteranean  or  percolating  waters  is, 
we  believe,  near  complete  *  *  *  ." 

Sec.  4.  Must  be  reduced  to  possession. 

And,  from  the  fugitive  nature  of  oil  and  gas,  it  has  been 
held  repeatedly  that  they^  must  be  reduced  to  possession  to 
become  the  subject  of  ownership,  and  a  grant  of  oil  and  gas 
gives  merely  the  right  to  explore  for  same.  Caddo  Oil  & 
Mining  Co.  v.  Producers  Oil  Co.,  134- La.  701;  Rives  v.  Gulf 
Refiining  Co.,  of  Louisiana,  133  La.,  179;  Cook  v.  Gulf  Ref. 
Co.,  of  Louisiana,  135  La.  609,  Citing  Watkins  v.  Atlanta 
&  Shreveport  Oil  &  Gas  Co.,  (Not  reported  but  see  it  in 
appendix)  ;  Ohio  Oil  Co.  v.  Indiana,  177  U.  S.  190,  20  Sup. 
Ct.  576,  44  L.  Ed:  729;  Brown  v.  Spillman,  155  U.  S.  655, 
15  Sup.  Ct.  254,  39  L,  Ed,  304;  Westmoreland  Gas  Co.  v. 
DeWitt  130  Pa.  235,  18  Atl.  724,  5  L.  R.  A.  731,  and 
Natalie  Oil  Co.  et  al.,  v.  La.  Ry  &  Nav.  Co.,  137  La.  706; 
Hanby  v.  Texas  Co.,  140  La.  190;  Higgins  Oil  &  Fuel  Co. 
v.  Guaranty  Oil  Co.,  145  La.  233.  Gulf  Refiining  Co.  v.  Hayne, 
148  La.  340;  Frost-Johnson  Lbr.  Co.,  v.  Nabors  Oil  &  Gas 
Co.,  149  La.  Frist- Johnson  Lbr.  Co.  v.  Sailings  et  al.,  149  La. 
See  also:  Elder  v.  Ellerbe,  135  La.  995;  Strother  v.  Mangham, 
138  La.  437;  Saunders  v.  Busch-Everett  Co.,  128  La.  1049. 

And  a  land  owner  cannot  complain  that  the  oil  beneath 
his  land  is  being  drawn  off  by  an  adjoining  land-owner  by 
pumping  or  otherwise.  Higgins  Oil  &  Fuel  Co.  v.  Guaranty 
Oil  Co.,  145  La.  233. 


AS  PART  OF  REALTY  11 

Sec.  5.  As  part  of  the  realty. 

While  oil  and  gas  must  be  reduced  to  possession,  and  it 
was  said  in  several  cases,  including  Caddo  Oil  &  Mining  Co. 
v.  Producers  Oil  Co.,  134  La.  701,  (citing  Ohio  v.  Indiana, 
177  U.  S.  190,  and  Brown  v.  Spillman,  155  U.  S.  665),  that 
they  are  not  considered  as  part  of  the  land  before  they  are 
brought  to  the  surface  or  reduced  to  possession,  yet  by  virtue 
of  the  rights  of  the  owner  of  the  land,  they  must  be  treated 
as  a  part  of  the  realty  underneath  the  surface  where  they  lie 
Rives  v.  Gulf  Refining  Co.  of  La.,  133  La.  178;  Elder  v. 
Ellerbe,  135  La.  995. 

And  in  De  Moss  v.  Sample  et  al,  143  La.  243,  the  propo- 
sition was  stated  that  while,  from  the  peculiar  character  of 
petroleum  gas  and  oil  the  ordinary  rules  relating  to  miner- 
als with  a  fixed  situs  cannot  be  applied  to  them,  they  belong 
to  the  owner  of  the  land  and  are  part  of  the  land  so  long  as 
they  are  on  it  or  in  it,  or  subject  to  the  control  of  the  owner, 
provided,  of  course,  that  adjoining  owners  may  drill  and 
reduce  to  possession  oil  from  the  common  field. 

And  the  right  to  explore  for  oil  and  gas  is  a  real  right 
(Natalie  Oil  Co.  v.  La.  Ry.  &  Navigation  Co.,  137  La.  706, 
Nabors  v.  Producers  Oil  Co.,  140  La.  985),  and  it  must  be 
established  by  written  evidence.  Hanby  v.  Texas  Co.,  140 
La.  189.  And  a  sale  of  oil  and  gas  granting  the  right  to 
explore  etc.,  confers  a  real  right.  Frost-Johnson  Lbr.  Co. 
v.  Nabors  Oil  &  Gas  Co.  149  La.  -  -. 

One  who  asserts  title  to  mineral  rights  claims  a  real 
right.  Wilson  et  al.  vs.  Pierson,  143  La.  287. 


12  FRUITS— SURFACE  OWNER 

Sec.  6.  As  fruits  of  land. 

Oil  and  gas  are  not  "fruits"  of  the  land  in  considering 
the  rights  of  a  possessor.  The  provisions  of  the  Civil  Code 
relative  to  "fruits"  refer  to  such  things  as  are  born  and  re- 
born of  the  soil.  Elder  v.  Elberbe  et  al.,  135  La.  990.  Al- 
though in  Cooke  v.  Gulf  Refiining  Co.,  135  La.  609  and  Mar- 
tel  v.  Jennings-Heywood  Oil  Syndicate,  114  La.  359,  the 
Court  cited  C.  C.  501  relative  to  the  "fruits"  produced  by 
the  thing  in  deciding  who  would  be  liable  for  the  expense  of 
certain  oil  production. 

Sec.  7.  Rights  of  owner  of  surface. 

The  owner  of  the  soil  has  the  exclusive  right  to  reduce  the 
oil  and  gas  under  the  land  to  possession.  Natalie  Oil  Co., 
et  al.  vs.  La.  Ry.  &  Nav.  Co.,  137  La.  706;  Strother  vs.  Man- 
gham,  138  La.  437;  Spence  v.  Lucas,  138  La.  772;  Saun- 
ders  v.  Bush  Everett  Co.,  138  La.  1049. 

And  he  may  bore  wells  to  extract  the  minerals.  Rives  et 
al  v.  Gulf  Refining  Co.,  133  La.  178. 

Or  he  may  sell  the  right.  Strother  v.  Mangham,  138  La. 
437. 

And  it  is  elementary  that  he  may  lease  the  same.  Spence 
v.  Lucas,  138  La.  772;  Saunders  v.  Bush-Everett  Co.,  138 
La.  1049. 

He  is,  for  all  practical  purposes,  the  owner  of  the  oil  and 
gas  under  the  surface,  subject,  of  course,  to  the  doctrines 
which  arise  from  the  peculiar  character  of  the  minerals,  such 
as  the  necessity  of  reducing  them  to  possession: 


SEVERANCE,  EXCEPTIONS  AND  RESERVATIONS        13 

Rives  v.  Gulf  Refining  Co.,  133  La.  178;  Cooks  v.  Gulf 
Ref.  Co.,  135  La.  609;  Natalie  Oil  Co.  v.  La.  Ry.  &  Nav.  Co., 
137  La.  706;  Strother  v.  Mangham,  138  La.  437;  Spence  v. 
Lucas,  138  La.  772;  Saunders  v.  Bush-Everett,  138  La.  1049; 
Hanby  v.  Texas  Co.,  140  La.  189;  DeMoss  v.  Sample,  143 
La.  243;  Calhoun  v.  Ardis,  144  La.  311. 

And  C.  C.  505  declares:  "The  ownership  of  the  soil  car- 
ries with  it  the  ownership  of  all  that  is  directly  above  and 
under  it." 

The  owner  of  the  minerals  may  sue  for  damages  occa- 
sioned by  the  usurpation  of  his  right  to  drill  for  them.  Cook 
v.  Gulf  Ref.  Co.,  135  La.  609.  And  when  he  has  granted  the 
ownership  of,  or  right  of  exploration  for,  the  minerals,  to 
another  party,  he  cannot  usurp  the  rights  of  his  grantee. 
Gulf  Ref.  Co.  v.  Hayne,  148  La.  340.  Nor  can  he  grant  a 
second  valid  lease  where  there  is  already  a  valid  lease  on  the 
land.  Standard  Oil  Co.  v.  Webb,  149  La.  -  -. 

A  land  owner  who  employs  an  agent  to  sell  a  lease  on  his 
land,  in  the  absence  of  agreement  to  the  contrary,  and  if  he 
acts  in  good  faith,  does  not  preclude  himself  from  selling  the 
lease  himself  or  from  having  other  agents  sell  it,  and  where 
a  broker  sues  for  commission  the  burden  is  on  him  to  prove 
his  contract.  Dickinson  v.  Robinson,  145  La.  438. 

Sec.  8.  Severance,  Exceptions  and  Reservations. 

The  owner's  title  may  be  dismembered  by  sale,  reservation 
or  exception. 

The  reasoning  of  the  Court  in  Hanby  v.  Texas  Co.,  140 
La.  189,  correctly  presents  the  point: 


14        SEVERANCE,  EXCEPTIONS  AND  RESERVATIONS 

"Conceding  that  the  sale  of  an  interest  in  the  oil  or  gas 
which  may  be  discovered  beneath  the  surface  of  a  particular 
tract  of  land  conveys  no  title  to  any  specific  oil  or  gas,  it 
nevertheless  carries  with  it  the  right  to  make  use  of  the  sur- 
face of  the  land  for  the  reduction  to  possession  of  the  oil  or 
gas  that  may  be  found,  and  in  fact  the  right  last  mentioned 
is  alone  conveyed  in  such  case  since  it  is  the  only  right  with 
respect  to  those  fugitive  products  that  the  owner  of  the  land 
himself  can  possess.  That  right,  however,  he  does  pos- 
sess since  it  is  a  right  of  use,  or  of  enjoyment,  and  hence  a 
constituent  of  his  title  to  the  land,  and  so  possessing,  he  may 
dispose  of  it,  since  the  three  things,  usus,  fructus  and  abusus, 
forming,  in  conjunction,  full  ownership,  may  be  separated 
and  the  title  dismembered,  and  in  that  event  the  rights  re- 
spectively resulting  from  such  dismemberment  retain  the  na- 
ture of  the  thing  upon  which  they  bear  as  though  no  dismem- 
berment had  occurred."  To  the  same  effect  Frost- Johnson 
Lbr.  Co.  v.  Nabors  Oil  &  Gas  Co.,  149  La.- . 

In  the  case  of  DeMoss  v.  Sample  et  al.,  143  La.  243,  the 
question  was  presented  as  to  whether  or  not  a  per- 
son could  sell  the  surface  and  reserve  the  minerals.  The 
Court  answered  in  the  affirmative,  saying: 

"The  elements  of  ownershin  in  land  may  be  severed.  The 
owner  may  sell  surface  rights,  and  except  from  the  sale  the 
minerals  below  the  surface,  and  reserve  to  himself  the  right 
to  mine  those  minerals  whether  the  minerals  be  in  place,  like 
coal,  sulphur,  etc.,  or  whether  they  be  migratory  like  oil  and 
gas  appear  to  be." 

And  the  Court  says  in  Calhoun  v.  Ardis,  144  La.  311  (a 
case  upholding  a  reservation) :  "Whatever  doubt  may  have 
existed  in  this  state  as  to  the  right  of  an  owner  of  lands  to 


PUBLIC  LANDS  15 

dismember  the  property  and  vest  the  ownership  of  the  sur- 
face of  the  soil  in  one  person  and  that  of  the  minerals  which 
might  be  situated  beneath  the  surface  of  the  soil  in  another 
person,  or  reain  it  in  himself,  was  definitely  set  at  rest  by  the 
decision  in  DeMoss  v.  Sample,  143  La.  243." 

But  the  two  foregoing  fases  are  criticised  in  Frost-  John- 
son Lbr.  Co.  v.  Sailings,  149  La.,  where,  in  a  divided  opinion 
the  court  held,  on  second  re-hearing,  that  those  cases  are  no 
authority  on  the  question  of  whether  a  sale  of  mineral  con- 
veys a  corporeal  or  incorporeal  things,  as  the  ratio  dicendi 
of  those  cases  was  not  applicable  to  that  question;  and  then 
the  court  holds  that  a  grant  or  reservation  of  oil  or  gas  car- 
ries merely  the  right  to  extract  such  minerals  from  the  soil, 
which  right  is  a  real  right  and  servitude  and  prescribes  by 
non-user  for  ten  years.  And  to  the  same  effect  is  Frost- John- 
son Lbr.  Co.  v.  Nabors  Oil  &  Gas  Co.,  149  La. where  it 

is  said  however  that  the  prescription  is  interrupted  where  the 
vendor  in  conveying  the  land  recites  that  the  mineral  rights 
have  been  reserved. 

Sec.  9.   Ownership  of  minerals — Public  Lands. 

The  beds  of  navigable  streams  and  lakes  and  tidewaters 
belong  to  the  State  and  the  "waste  lands"  within  the  State 
belong  to  the  United  Stats,  which  conveyed  certain  "swamped 
and  overflowed"  lands  to  the  State.  But  in  conveying  such 
lands  the  situation  at  the  time  must  be  considered  and  the 
Government  did  not  have  title  to  lands  not  existing  at  the 
time,  such  as  islands  and  lands  formed  by  river  silt  and  sand. 
State  v.  Capdevielle,  146  La.  94;  Atchafalaya  Land  Co.,  v. 
James,  146  La.  109.  See  also  Wemple  v.  Eastham,  144  La. 
957  and  Slattery  v.  Arkansas  Nat.  Gas  Co.,  138  La.  793. 


16  PUBLIC  LANDS 

The  State  is  the  owner  of  all  lands  underlying  the  navig- 
able waters  of  her  territory,  below  mean  high  water,  and  under 
the  laws  of  Louisiana  the  ownership  of  the  banks  is  in  those 
who  possess  the  adjacent  lands,  and  the  accretions  upon 
the  soil  on  the  edge  of  the  waters  becomes  the  property  of 
the  owner  of  the  soil  from  the  time  of  its  emergence,  with  a 
reasonable  appearance  of  permanence,  and  identification 
with  the  soil  of  the  shore  above  the  surface  of  the  water  at 
its  ordinary  stage,  subject  to  the  servitude  in  favor  the  pub- 
lic as  to  the  use  of  river  banks.  State  vs.  Richardson  et  al., 
140  La.  329;  Palmer  v.  Cotton  Queen  Oil  Co.,  141  La.  305; 
Greening  v.  Brinkerhoff,  145  La.  760. 

See  also  Strohecker  v.  Robinson,  147  La.  652. 

In  the  case  of  Producers  Oil  Co.  v.  Hanzen  et  al.,  132  La. 
691,  the  Court  said:  "A  locator  on  placer  grounds  belong- 
ing to  the  United  States,  surveyed  and  unsurveyed,  is  the 
equitable  owner  of  the  mining  ground,  and  the  Government 
holds  the  premises  in  trust  for  him,  to  be  delivered  upon  the 
payment  specified;  and  he  has  sufficient  interest  to  protect 
his  rights  in  the  courts.  Mining  Co.  v.  Kerr,  130  U.  S.  256, 
32  L.  Ed.  906;  Dahl  v.  Raunheim,  132  U.  S.  269,  35  L.  Ed. 
324;  Creed  &  Cripple  Creek  Co.  v.  Unita  Tunnel  Co.,  196  U. 
S.  337,  9  L.  Ed.  501."  And  in  Rives  et  al  v.  Gulf  Refining 
Co.,  133  La.  178,  the  Court  said:  "Lands  of  the  United 
States  containing  oil  are  subject  to  location  in  the  same  man- 
ner as  are  other  mineral  lands.  Thornton,  No.  309;  Act 
Feb.  11,  1897,  c.  216,  29  Stat.  526,  U.  S.  Comp.  Stat.  1901, 
p.  1434.  *  *  *  Such  a  locator  has  an  equitable  title, 
one  in  expectancy,  which  the  courts  will  recognize  until  the 
government  of  the  United  States  has  acted  thereupon." 

See  also  the  case  of  Greene  et  al.  v.  U.  S.,  274  Fed.  145, 


CO-OWNERS  17 

which  deals  with  general  questions  concerning  meander  lines 
of  water  courses,  government  surveys,  etc. 

By  Act  31  of  1910,  as  amended  by  Act  149  of  1920,  the 
State  of  Louisiana  sold  to  the  City  of  Shreveport  the  bed  of 
Cross  Lake,  "to  protect  the  public  health,"  by  supplying  "a 
good  and  wholesome  supply  of  water'"  but  the  State  reserved 
the  mineral  rights  in  the  sale.  It  appears,  however,  that  to 
prospect  in  the  lake  bed  for  minerals  would  be  inconsistent 
with  the  use  as  a  wholesome  water  basin,  and  the  State,  by 
Act  213  of  1906  has  made  it  a  misdemeanor  to  contaminate 
in  any  way  the  water  supply  of  any  city  or  to  permit  the  dis- 
charge or  escape  into  such  water  supply  any  substance  or 
fluid  that  would  injury  the  quality  of  the  water  or  contami- 
nate it. 

See  Sec.  23  relative  to  lease  of  public  lands. 

Sec.   10.  Co-owners. 

An  owner  of  an  undivided  interest  in  minerals  owns  an 
undivided  interest  in  the  whole,  and  his  rights  cannot  be 
exercised  by  a  writ  of  possession,  as  it  would  be  impossible 
to  execute  it.  Martel  v.  Jennings-Heywood,  114  La.  903, 
115  La.  451. 

Owners  of  the  surface  and  owners  of  the  minerals  are  not 
tenants  in  common.  They  are  owners  of  separate  interests. 
DeMoss  v.  Sample,  143  La.  252. 

When  parties  own  minerals  in  undivision,  they  are,  of 
course,  subject  to  an  accounting.  Crusel  v.  Brooks,  133  La. 
447;  Saint  v.  Martel,  127  La.  73. 

An  owner  of  an  undivided  interest  in  lands  has  no  right  to 


18  ADJOINING  LAND   OWNERS 

exploit  the  same  for  oil  and  gas  without  the  consent  of  his 
co-owner.    Gulf  Refining  Co.  v.  Carroll,  145  La.  299. 

A  joint  owner  may  act  for  his  co-owners  in  connection 
with  the  common  property,  and  where  part  of  the  co-owners 
obtain  an  injunction  against  one  attempting  to  sink  wells  on 
their  land,  they  are  acting  as  much  for  their  joint  owner  as 
for  themselves.  Gulf  Refining  Co.  v.  Hayne,  148  La.  340. 
And  where  a  person  leases  lands  for  development  for  oil  and 
gas  he  is  dealing  with  the  same  as  being  owned  by  him  in 
severality.  Myers  v.  Myers  et  al.,  148  La.  174. 

Known  oil  lands,  like  mines,  cannot  be  judicially  parti- 
tioned in  kind,  at  the  suit  of  one  of  the  co-owners,  or  by  a 
creditor  of  a  co-owner.  Gulf  Refining  Co.  v.  Hayne,  138  La. 
555.  Connett  v.  Wright,  149  La.— 

Where  parties  hold  oil  and  gas  leases  in  indivision,  a  par- 
tition can  be  had  at  any  time  unless  there  is  a  contract  to  the 
contrary.  Connett,  v.  Wright,  149  La. 

Where  an  owner  of  mineral  rights  conveys  a  part  interest 
in  same  to  his  attorney,  the  attorney  can  maintain  a  suit  to 
protect  his  interest  after  his  co-owner  has  conveyed  the  re- 
maining interest  to  the  defendants  in  such  suit  and  the  suit 
has  been  dismissd  as  to  the  co-owner  by  such  co-owner  and 
the  defendants.  McClung  v.  Atlas  Oil  Co.,  148  La.  674. 

Sec.  11  Adjoining  Landowners. 

An  owner  cannot  be  debarred  from  the  legitimate  use  of 
his  property  because  it  may  cause  real  damage  to  his  neigh- 
bor. He  may  extract  oil  by  wells  or  pumps.  And  as  an 
owner  of  land  does  not  own  the  fugitive  oil  and  gas  beneath 
it,  he  cannot  complain  of  the  use  of  a  pump  by  a  neighbor. 


USUFRUCTUARY  19 

The  owner  of  land  is  not  bound  to  do  anything  to  save  his 
neighbor  from  loss,  the  only  restriction  being  that  he  abstain 
from  doing  anything  to  cause  a  loss,  and  where  he  has  drilled 
a  non-producing  well,  which,  when  open,  interferes  with  his 
neighbor's  pump,  by  letting  air  into  the  subterranean  regions, 
he  will  be  enjoined  from  such  interference.  A  landowner 
may  prevent  fugitive  oil  from  being  drawn  from  his  land  if 
he  can  do  so  by  mechanical  means  which  do  not  interfere 
with  the  rights  of  adjoining  landowners  to  draw  the  oil  from 
their  lands. 

Higgins  Oil  &  Fuel  Company  v.  Guaranty  Oil  Company, 
145  La.  233. 

The  cases  of  Russell  v.  Producers  Oil  Company,  138  La. 
184;  143  La.  217;  146  La.  481;  Croom  v.  Noel,  143  La.  189, 
and  Houston  Ice  and  Brewing  Company  v.  Murray  Oil  Com- 
pany 149  La. ,  involve  general  questions  of  boundary 

and  the  location  of  wells,  and  consequent  ownership  thereof. 

Sec.   12.  Rights  of  Usufructuary. 

The  rights  of  a  usufructuary  to  oil  and  gas  in  land  would 
seem  to  be  defined  by  C.  C.  552,  which  says: 

"The  usufructuary  has  a  right  to  the  enjoyment  and  pro- 
ceeds of  mines  and  quarries  in  the  land  subject  to  the  usu- 
fruct, if  they  were  actually  worked  before  the  commence- 
ment of  the  usufruct;  but  he  has  no  right  to  mines  and  quar- 
ries not  opened." 

This  is  one  of  the  few  provisions  of  Louisiana  law  enacted 
before  the  discovery  of  oil  which  would  appear  to  contem- 
plate minerals  in  any  form.  When  it  was  enacted,  however, 
oil  and  gas  were  not  known,  and  it  apparently  refers  to  min- 


20  RIGHT-OF-WAY 

erals  "in  place,"  and  it  has  been  doubtful  just  what  effect 
would  be  given  to  it  as  respects  oil  and  gas.  A  reasonable 
interpretation  of  it,  however,  should  include  oil  and  gas 
wells. 

In  Elder  v.  Ellerbe  et  al.,  135  La.  990,  in  considering  the 
rights  of  a  mere  possessor  of  land  to  oil  and  gas  produced 
therefrom,  the  Court  referred  to  that  article  in  the  following 
language : 

"The  right  of  a  possessor  in  good  faith  to  gather  for  his 
benefit  the  fruits  of  the  property  of  another  cannot  be  greater 
than  the  right  of  a  usufructuary.  He  has  no  right  to  mines 
and  quarries  not  opened."  R.  C.  C.  552. 

There  the  Court  evidently  considered  that  the  provision 
would  cover  oil  and  gas. 

In  the  case  of  Cochran  v.  Gulf  Refining  Co.  of  La.,  139  La. 
1010,  a  usufructuary  had  granted  an  extension  of  a  lease  on 
land  in  which  she  owned  a  half  interest,  and  the  lease  was 
attacked  on  that  ground  among  others,  but  was  decided  on 
other  points  without  passing  upon  the  rights  of  the  usufruc- 
tuary. 

Sec.   13.  Right  of  way. 

Whether  or  not  a  right-of-way  carries  with  it  the  right  to 
oil  and  gas  beneath  it,  depends,  of  course,  on  the  terms  of  the 
transfer.  And  in  Natalie  Oil  Co.  v.  La.  Ry.  &  Nav.  Co.,  137 
La.  706,  where  the  right  of  a  railroad  company  to  drill  on 
its  right  of  way  was  at  issue,  the  Court  said : 

"A  right  of  way  may  consist  either  of  the  fee  or  merely 
of  a  right  of  passage  and  use. 


POSSESSORS— TRESPASSERS  21 

"It  follows  that  if  the  defendant  railway  is  the  owner  of 
the  fee  in  the  land,  or  right  of  way  bought  by  it,  it  has  the 
right  to  explore  same  for  the  purpose  of  extracting  oil  there- 
from. *  *  *„ 

Sec.   14.  Rights  of  possessor  or  trespasser. 

While  the  provisions  of  the  Civil  Code  relative  to  possess- 
ors in  bad  faith  claiming  as  owners  are  not  strictly  applied 
in  cases  relating  to  mineral  leases,  still  a  trespasser,  or  pos- 
sessor of  mineral  lands  without  right  or  title  is  indebted  to 
the  lawful  owner  for  the  value  of  the  minerals  extracted. 
Cooke  v.  Gulf  Ref.  Co.,  135  La.  609;  Martel  v.  Jennings- 
Heywood  Oil  Syndicate,  114  La.  351. 

And  such  a  possessor  who  acts  in  moral  good  faith  and  on 
advice  of  counsel  will  not  be  held  for  exemplary  damages; 
and  the  cost  of  drilling  and  equipping  a  well  will  be  deducted 
from  the  value  of  the  product.  Cooke  v.  Gulf  Refining  Co., 
135  La.  609.  And  expenses  ordinary  and  incidental,  includ- 
ing cost  of  producing,  transporting,  preserving  and  selling 
are  also  deducted.  Martel  v.  Jennings-Heywood  Oil  Syndi- 
cate, 114  La.  360. 

In  Green  et  al.  and  Lucks  et  al.  v.  U.  S.,  274  Fed.  145,  the 
Government  brought  suit  to  quiet  title  and  for  value  of  oil 
extracted,  and  the  District  Court  allowed  the  cost  of  extract- 
ing the  oil  to  be  deducted  from  the  value  thereof,  finding  that 
the  land  belonged  to  plaintiff.  The  Circuit  Court  reversed 
the  District  Court  on  the  question  of  title. 

It  is  even  said  in  Gulf  Refining  Co.  v.  Hayne,  148  La.  340, 
that  a  lessor  who  usurps  the  rights  of  his  lessee  and  drills  a 
well  on  the  leased  premises  is  entitled  to  be  reimbursed  the 


22  POLICE  POWER 

cost  of  roducing  the  oil  and  drilling  the  well  from  which  it 
is  produced. 

In  the  case  of  Jennings-Heywood  Oil  Syndicate  v.  Hous- 
siere-Latreille  Oil  Co.  et  al.,  127  La.  971,  the  Court  charac- 
terized as  "humorous"  the  contention  that  an  illegal  pos- 
sessor of  land  would  be  entitled  to  the  minerals  produced 
pending  the  decison  of  ownership. 

Nor  will  a  possessor  in  good  faith  be  entitled  to  the  min- 
erals produced  during  his  possession  as  "fruits"  of  the  land. 
To  the  contrary,  he  owes  the  owner  the  royalties  and  bon- 
uses received  for  permitting  operations  on  the  land.  Elder 

v.  Ellerbe  et  al.,  135  La.  990. 

« 

A  lessee,  sued  as  a  trespasser  for  the  return  or  value  of  oil 
extracted,  will  not  be  dismissed  from  the  suit  upon  disclosing 
the  name  of  his  lessor,  as  provided  by  the  Code  of  Practice, 
because  upon  proving  his  claim  the  plaintiff  is  entitled  to 
judgment  against  such  lessess  for  the  return  of  the  oil,  or 
payment  therefor.  DeSoto's  Heirs  v.  Star  Oil  Company, 
139  La.  965. 

A  settler  on  unsurveyed  government  mineral  lands,  who 
has  complied  with  statutory  provisions,  is  not  a  trespasser, 
but  the  equitable  owner.  Producers  Oil  Co.  v.  Hansen  et  al., 
132  La.  691;  Rives  v.  Gulf  Ref.  Co.,  133  La.  178. 

Injunction  is  the  proper  remedy  against  a  trespasser  on  a 
lease.  Houston  Ice  &  Brewing  Assn.  v.  Murray  Oil  Co., 
145  La.  1050. 

Sec.   15.  Police  Power. 

It  has  been  said  in  several  cases  that  the  ownership  and 


PROOF— ACQUIRING   MINERALS  23 

production  of  oil  are  subject  to   regulation  by,  and  the  police 
powers  of,  the  State: 

Spence  et  al.  v.  Lucas  et  al.,  138  La.  763. 
Strother  v.  Mangham,  138  La.  437. 
Saunders  v.  Busch-Everett  Co.,  138  La.  1049. 

This  control  by  the  Legislature  has  taken  form  in  the  var- 
ious conservation  measures  and  in  the  common  purchaser 
bills. 

C.  C.  505:  "The  ownership  of  the  soil  carries  with  it  the 
ownership  of  all  that  is  directly  above  and  under  it." 

"The  owner  may  construct  below  the  soil  all  manner  of 
works,  digging  as  deep  as  he  deems  convenient,  and  draw 
from  them  all  the  benefits  which  may  accrue,  under  such 
modifications  as  may  result  from  the  laws  and  regulations 
concerning  mines  and  the  laws  and  regulations  of  the  police." 

Sec.   16.  Proof    of    ownership    of    and   right    to 
minerals. 

A  conveyance  of  an  interest  in  minerals,  carrying  the  right 
to  explore  for  same,  is  a  jus  in  re,  and  its  classification  being 
determined  by  the  character  of  the  object  to  which  it  is  ap- 
plied, it  falls  in  the  catagory  of  immovables,  and  the  title 
thereto  cannot  be  destroyed  or  a  new  title  created  by  parol 
evidence.  Hanby  v.  Txas  Co.,  140  La.  189. 

Sec.  17.   Acquisition   of  minerals  and  mineral 
rights. 

Title  to  minerals  and  minerals  rights  may  be  acquired  in 
a  number  of  ways. 


24  ACQUIRING  MINERALS 

Ordinarily  the  sale  of  the  fee  carries  with  it  the  minerals 
and  mineral  rights.  51  L.  R.  A.  (N.  S.)  268.  See  Civil 
Code  462-468;  47  A.  1489;  Civil  Code  3412,  etc. 

Minerals  are  also  acquired  by  lease  (by  whatever  name  it 
may  be  called),  by  sale,  reservation  and  exception,  etc. 

In  the  acquisition  of  minerals  in  any  manner  it  is,  of 
course,  necessary  that  the  person  alienating  the  same  have  a 
good  and  valid  title.  Burkholder  v.  Consol  Prog.  Oil  Corp. 
149  La.—. 

The  number  of  important  cases  affecting  title  to  valuable 
mineral  properties  but  discussing  general  prositions  not 
particularly  applicable  to  oil  and  gas  land,  is  too  numerous 
to  mention  in  detail,  but  the  following  cases  are  illustrative: 
Wadkins  v.  Producers  Oil  Co.,  130  La.  308;  Gulf  Refining 
Co.  of  La.  v.  Hart,  130  La.  51 ;  Miller  v.  Vivian  Oil  Co.,  131 
La.  761;  Cox  v.  Busch-Everett  Co.,  131  La.  817;  Gulf  Re- 
fining Co.  v.  Jeems  Bayou  Hunting  &  Fishing  Club,  129  La. 
1021;  Moore  v.  Gulf  Refining  Co.,  124  La.  607;  Thompson 
et  al.  v.  Busch-Everett  Co.,  133  La.  938;  Lattimer's  Heirs  v. 
Gulf  Refining  Co.,  146  La.  249;  Slattery  v.  Arkansas  Nat- 
ural Gas  Co.,  138  La.  793;  Vestal  v.  Producers  Oil  Co.,  135 
La.  984;  Vinton  Oil  &  Sulphur  Co.  v.  Gray,  135  La.  1049; 
etc.,  etc. 

In  one  of  the  earliest  cases  affecting  oil  and  gas  lands  the 
Supreme  Court  expressed  itself  as  not  being  in  favor  of  stale 
claims  to  lands  made  only  after  they  became  valuable.  See 
Cochran  Oil  &  Development  Co.  v,  Arnaudet,  11  La.  587, 
where  it  is  said: 

"*  *  *  Some  of  the  assignors  of  the  plaintiff 
are  the  great-great-great  grandchildren  of  Anthony 
Cochran.  None  of  the  assignors  knew  him  otherwise 


LEASE  25 

than  by  reputation.  They  were  indifferent  during 
this  long  interval  of  time  to  any  rights  they  may  have 
had  in  this  land<  and  indifferent,  also,  to  any  duty 
connected  with  it  as  owners;  and  it  was  only  after 
the  property  had  acquired  value  from  being  ascer- 
tained to  be  in  the  recently  discovered  'oil  field'  that 
they  appear  upon  the  scene,  after  being  hunted  up 
by  a  party  acting  in  his  own  interest  for  a  consider- 
ation, seeking  to  attack  parties  who  have  been  in 
possession  of  the  property  for  many  years  in  good 
faith  and  who  had  made  valuable  improvements 
upon  it  at  great  expense/' 

And  in  that  case  the  contentions  of  plaintiffs  were  dis- 
missed. This  question  must  necessarily,  however,  be  gov- 
erned by  the  particular  circumstances  of  each  case. 

Sec.   18.  Lease: — In  General. 

"Not  one  land  owner  in  a  hundred  develops  his  own  land. 
Even  if  he  should  be  financially  able  to  do  so,  not  being  in 
the  oil  business,  he  would  not  care  to  assume  the  risk,  the 
usual  and  almost  universal  custom  is  to  lease  the  land  to  an 
oil  operator."  Mohawk  Oil  Company  v.  Hayne,  270  Fed. 
851.  , 

The  term  most  commonly  employed  in  describing  contracts 
giving  rights  and  privileges  to  mine  and  explore  for  oil  and 
gas,  is  "lease."  Cook  v.  Gulf.  Ref.  Co.,  127  La.  592;  Bush- 
Everett  Co.  v.  Vivian  Oil  Company,  128  La.  886;  Rives  v. 
Gulf  Refining  Co.,  133  La.  178;  Gulf  Refining  Co.  v.  Hayne, 
138  La.  555;  Spence  v.  Lucas  138  La.  763. 

And  the  name  given  such  a  contract  is  immaterial.  Mur- 
ray v.  Barnhart,  117  La.  1023;  Rives  et  al.  v.  Gulf  Refining 


26  ACQUISITION  OP  LEASE 

Co.,  133  La.  178;  Gulf  Refining  Co.  v.  Hayne,  138  La.  555; 
Saunders  v.  Bush-Everett  Co.,  138  La.  1049. 

Such  leases  are  in  a  class  by  themselves.  Rives  v.  Gulf, 
133  La.  178;  Gulf  Refining  Company  v.  Hayne,  138  La.  555; 
Cook  v.  Gulf,  135  La.  609. 

They  are  not  to  be  considered  as  ordinary  land  or  farm  or 
house  leases  although  there  is  some  resemblance  in  them  to 
coal  or  solid  mineral  leases.  Rives  v.  Gulf,  133  La.  178; 
Cook  v.  Gulf,  135  La.  609. 

Until  the  Legislature  passes  laws  on  the  subject,  the  Courts 
will  adhere  to  the  jurisprudence  on  the  subject  and  treat  such 
contracts  as  leases.  Spence  v.  Lucas,  138  La.  763. 

The  laws  relating  to  sales  and  leases  found  in  the  code 
cannot  be  unreservedly  applied  to  them,  but  will  be  applied 
where  possible.  Gulf  Refining  Co..  v.  Hayne,  138  La.  555. 
And  they  will  be  considered  as  leases  and  the  law  relating  to 
leases  applied  in  so  far  as  possible.  Spence  v.  Lucas,  138  La. 
763. 

While  a  well  already  drilled  will  not  generally  be  included 
in  a  lease  providing  for  a'  well  to  be  drilled  (Cook  v.  Gulf 
Refining  Co.,  127  La.  592)  ;  still,  where  the  circumstances 
show  that  a  drilling  well  was  intended  to  be  included  in  a 
lease,  it  will  be  so  included  (Russell  v.  Producers  Oil  Co., 
143  La.  217). 

Sec.   19.  How  acquired.      ' 

As  we  have  previously  seen  the  most  common  method  of 
acquiring  minerals  and  mineral^  rights  is  by  lease,  and  this, 
of  course,  should  be  acquired  from  the  owner.  Rives  v.  Gulf 
Refining  Co.,  133  La.  178;  Natalie  Oil  Co.  v.  La.  Ry.  &  Nav. 


FORM  OF  LEASE— LESSOR  27 

Co.,  137  La.  706;  Strother  v.  Mangham,  138  La.  437;  Spence 
v.  Lucas,  138  La.  763;  Saunders  v.  Busch-Everett  Co.,  138 
La.  1049;  Hanby  v.  Texas  Co.,  140  La.  189.  Burkholder  v. 
Consol.  Prog.  Oil  Corp.,  149  La. . 

Sec.  20.   Form  of  Contract. 

While  it  is  not  necessary  under  the  Louisiana  law  that 
leases  and  mineral  contracts,  conveyances,  etc.,  be  in  any  par- 
ticular form,  such  contracts  containing  reciprocal  obligations 
should  be  signed  by  all  the  parties.  In  Cook  v.  Gulf  Refining 
Co.,  127  La.  592,  the  Court  noticed  the  failure  of  the  lessee 
to  sign,  and  in  the  same  case  it  was  said  that  a  well  brought 
in  before  a  lease  was  signed  could  not  be  considered  as  per- 
formance of  the  lease  signed  thereafter. 

The  lease  should  also  be  filled  out  properly  where  a  form 
is  used  and  no  blanks  should  be  left.  The  point  was  made 
in  McClendon  v.  Busch-Everett  Co.,  138  La.  722,  that  the 
space  left  for  fixing  the  time  within  which  operations  should 
begin  had  been  left  blank,  but  the  Court  held  that  after  oper- 
ations had  been  started  and  permitted,  this  was  immaterial. 

Sec.  21.  The  lessor. 

The  rights  and  duties  of  the  lessor  are  treated  incident- 
ally under  the  various  headings  dealing  with  the  lease,  and 
need  not  be  repeated.  There  are  a  few  general  principles, 
however,  which  may  be  at  this  point  referred  to  with  profit. 

The  Courts  do  not  look  with  favor  on  a  complaint  of  a 
lessor  where  the  lessee  is  actually  developing  in  accordance 
with  the  terms  of  the  contract.  Knight  Bros.  v.  Standard 
Oil  Co.,  147  La.  272. 


28  LESSOR 

In  Spence  v.  Lucas,  138  La.  770,  it  was  said,  arguendo, 
that  a  lessor  would  not  be  permitted  to  sue  for  a  dissolution 
of  the  lease  on  the  grounds  that  he  was  not  the  owner  of  the 
property  leased. 

A  lessor  who  has  parted  with  the  fee  or  assigned  the  roy- 
alty rights  cannot  declare  a  forfeiture  for  failure  of  the 
record  owner  of  a  lease  to  make  the  necessary  payments  to 
keep  it  alive.  Baird  v.  Atlas  Oil  Co.,  146  La.  1091,  citing 
Ohio  Iron  Co.  v.  Auburn  Iron  Co.,  64  Minn.  404,  67  N.  W. 
221;  Craig  v.  Summers,  47  Minn,  189,  49  N.  W.  742,  15  L. 
R.  A.  236,  Thornton  Oil  &  Gas  Sec.  168.  Nor  can  he  grant 
an  extension  of  the  lease.  Burkholder  v.  Consol.  Prog.  Oil 
Corp.,  149  La. 

A  lessor  who  refuses  to  perform  a  contract  should  aban- 
don it.  Prince  v.  Standard  Oil  Co.,  149  La.  288. 

A  lessor  is  a  necessary  party  to  a  suit  affecting  title  to  the 
property  leased.  DeSota's  Heirs  v.  Standard  Oil  Co.,  139 
La.  965. 

A  lessor  is  the  legal  possessor  of  the  surface  except  for 
the  purposes  expressly  granted  the  lessee,  and  the  function 
and  responsibility  of  looking  after  the  preservation  of  fences, 
timber,  etc.,  belongs  to  him  and  not  the  lessee.  Wemple  v. 
Pasadena  Pet.  Co.,  147  La.  532. 

A  lessor  who  drills  a  well  on  the  lease  of  his  lessee  must 
deliver  to  the  lessee  the  proceeds  from  the  well  less  cost  of 
production.  Gulf  Ref.  Co.  v.  Hayne,  148  La.  340. 

A  lessor  who  received  a  substantial  cash  consideration  for 
the  drilling  of  as  many  wells  as  the  lessee  may  desire,  cannot 
retain  the  money  as  the  consideration  for  one  well  drilled  and 
ask  that  the  lease  be  annulled  as  to  the  balance  of  the  land 


LESSEE  29 

on  the  ground  that  the  lessee  has  violated  an  implied  obliga- 
tion to  drill  other  wells.  McClendon  v.  Busch-Everett  Co., 
138  La.  722. 

Sec.  22.  The  lessee. 

The  rights  of  the  lessee  are  treated  incidentally  in  a  num- 
ber of  sections,  under  the  head  of  payments,  development, 
potestative  condition,  etc.,  and  need  not  be  repeated  at  this 
point.  Certain  principles  are  here  set  forth,  however,  that 
will  not  be  found  elsewhere. 

In  Cook  v.  Gulf  Refining  Co.,  127  La.  592,  it  was  said  that 
a  lessee  who  obtains  a  lease  to  bore  for  oil  merely  acquires 
a  hope,  and  the  lessor  has  discharged  his  obligation  in  per- 
mitting the  lessee  to  attempt  to  realize  his  hope.  But  during 
the  term  of  the  lease  the  lessee  has  a  real  right  which  cannot 
be  disregarded  by  the  lessor  while  it  is  in  effect.  Nabors  v. 
Producers  Oil  Co.,  140  La.  985. 

The  lessee  cannot  be  forced  to  do  more  than  comply  with 
the  terms  of  the  lease.  Knight  Bros.  v.  Standard  Oil  Co., 
147  La.  272. 

A  lessee  has  only  such  rights  on  the  surface  necessary  for 
development.  Houssiere-Latreille  v.  Jennings-Heywood,  115 
La.  107.  He  is  only  required  to  treat  the  surface  of  the  land 
as  a  good  administrator,  and  is  not  bound  by  the  provisions 
of  law  relating  to  ordinary  leases,  whereby  the  lessee  is  liable 
for  all  damages  no  matter  by  whom  done  and  must  restore 
the  premises  in  like  condition  in  which  received,  etc.,  and 
where  a  lease  gives  the  right  of  ingress  and  egrss,  the  lessee 
is  not  responsible  for  the  destruction  of  fences,  etc.,  by  third 
parties,  as  it  is  not  required  to  exercise  police  supervision 


30  LESSEE 

over  the  property.    Wemple  v.  Pasadena  Petroleum  Co.,  147 
La.  532. 

A  lessee  who  has  parted  with  record  title  to  a  lease  cannot 
make  payments  so  as  to  keep  it  alive  as  against  third  per- 
sons. Baird  v.  Atlas  Oil  Co.,  146  La.  1100.  And  the  lessee 
who  has  parted  with  a  portion  of  the  lease  cannot  rescind 
the  transfer.  Jennings-Heywood  v.  Home  Oil  &  Develop- 
ment Co.,  113  La.  383. 

The  lessee  has  the  right  to  maintain  his  possession  against 
his  lessor  or  his  lessor's  transferrees,  and  all  other  persons. 
Jennings-Heywood  v.  DeBallion,  113  La.  572. 

A  lessee  under  a  mineral  lease  is  a  tenant  and  he  cannot 
contest  or  force  a  change  in  the  ownership  of  his  lessor,  nor 
can  he  force  a  partition  of  the  land  leased.  Gulf  Refining 
Co.  v.  Hayne,  138  La.  555. 

In  Rives  v.  Gulf  Refining  Co.,  133  La.  189,  the  Court  held 
that  the  rule  that  a  tenant  cannot  deny  his  landlord's  title 
does  not  embrace  an  oil  or  gas  lease  which  the  lessor  had  no 
right  to  give,  if  neither  the  lessee  nor  his  assignees  took  pos- 
session or  executed  any  powers  or  rights  under  it,  citing 
Thornton  on  Oil  &  Gas.  And  the  Court  further  cited  the 
same  work  to  the  effect  that : 

"If  a  person  take  a  second  lease  of  the  premises  from 
the  person  claiming  adversely  to  the  first  lessor,  he  cannot 
refuse  to  pay  rent  under  the  second  lease  on  the  ground  that 
the  first  lessor  had  the  better  title." 

In  Spence  v.  Lucas,  138  La.  770,  it  was  said  that  a  lessee 
would  not  be  permitted  to  sue  his  lessor  for  a  dissolution  of 
a  lease  on  the  grounds  of  a  bad  title,  unless  disturbed  in  pos- 
session. 


LESSEE— PUBLIC  LANDS  31 

A  lessee  under  a  mineral  lease  sued  for  the  property  and 
the  value  of  oil  extracted,  cannot  be  dismissed  from  the  suit 
upon  disclosing  the  name  of  the  lessor,  as  provided  by  the 
Code  of  Practice  in  suits  affecting  leases,  as  he  is  a  proper 
party  to  litigate  the  question  of  payment  for  the  oil.  DeSoto's 
Heirs  V.  Standard  Oil  Co.,  139  La.  965. 

A  lessee  may  claim  damages  for  slander  of  title.  Baird  v. 
Atlas  Oil  Co.,  146  La.  1102. 

The  lessee  who  has  delivered  an  oil  royalty  to  the  wrong 
party  owes  to  the  rightful  owner  the  value  of  the  oil,  being 
the  price  received  for  same  by  the  persons  to  whom  delivered, 
plus  interest  from  judicial  demand.  Russell  v.  Producers 
Oil  Co.,  146  La.  481. 

A  lessess  who  owns  leases  on  adjoining  tracts  and  drills 
a  well  the  location  of  which  is  doubtful,  merely  owes  royalty 
to  the  owner  upon  whose  land  the  well  is  found  to  be.  Rus- 
sell v.  Producers  Oil  Co.,  143  La.  217. 

A  lessee  who  has  been  prevented  from  operating  through 
acts  of  his  lessor  is  entitled  to  the  proceeds  of  a  well  drilled 
by  his  lessor.  Gulf  Refining  Co.  v.  Hayne,  148  La.  340. 

A  lessee  in  exclusive  possession  is  an  indispensable  party 
to  a  suit  to  establish  the  validity  of  a  prior  lease  the  neces- 
sary effect  of  which  would  be  to  render  its  own  invalid.  Vin- 
cent Oil  Co.  v.  Gulf.  Ref.  Co.,  195  Fed.  434. 

Sec.  23.  Public  lands. 

Act  No.  30  of  1915  provides  that  all  State  Lands  may  be 
leased  by  the  Governor  and  provides  the  method  of  leasing, 
and  Act  21  of  1915  ratifies  certain  leases  previously  executed 
by  the  Governor.  (See  Appendix). 


32  MINORS— MARRIED  PERSONS 

Act  268  of  1908  author ies  the  Caddo  Levee  Board  to  lease 
or  farm  out  for  oil,  gas  and  minerals  the  lands  within  the 
limits  of  said  district  for  a  royalty  in  oil  and  gas. 

School  lands  are  leased  under  Act  142  of  1919,  which  re- 
peals Act  214  of  1912  and  39  of  1910,  and  amends  Act  130 
of  1916.  It  provides  that  Parish  School  Boards  have  the 
right  to  grant  mineral  leases  by  resolution  of  the  Board  with- 
out a  vote  of  the  township,  and  such  leases  shall  be  executed 
by  the  Superintendent  and  Parish  Treasurer. 

As  to  the  lease  of  Government  lands,  see  the  Federal  Oil 
Leasing  Act  of  1920.  Also  Morrison-DeSoto,  Oil  and  Gas 
Rights  and  Thortnton  on  Oil  and  Gas,  etc. 

Sec.  24.  Lands  of  Minors  and  Interdicts. 

The  lease  of  lands  of  minors  is  covered  specifically  by  Act 
192  of  1916  and  Act  116  of  1920. 

Sec.  25.  Husband  and  Wife. 

There  seems  to  be  no  doubt  under  the  Louisiana  law  that 
the  husband  can  execute  a  lease  on  the  community  property. 
But  as  to  property  standing  in  the  wife's  name,  and  the  sep- 
arate and  paraphernal  property  of  the  wife,  she  should  exe- 
cute the  lease,  and,  in  propr  cases,  join  her  husband  and  be 
authoried  by  him. 

A  husband  has  no  authority  to  assign  leases  standing  in 
his  wife's  name.  Denman  v.  Wilder,  148  La.  481.  In  the 
same  case  it  is  held  that  a  husband  can  transfer  leases  to  his 
wife  as  a  dation  en  paiement  provided  she  does  not  personally 
assume  her  husband's  obligations. 


CO-OWNERS  33 

Act  35  of  1921  provides  that  when  the  homestead  has  been 
properly  designated  as  such  on  the  public  records,  it  cannot 
be  sold  or  mortgaged  except  with  the  consent  of  the  wife 
specifically  set  forth  in  the  act  or  deed.  As  oil  and  gas  are 
a  part  of  the  realty,  it  would  appear  that  the  wife  should  sign 
any  alienation  of  these  minerals  affecting  such  homestead. 

Sec.  26.  Co-owners. 

There  is  no  question  that  co-owners  may  join  in  a  lease  of 
the  whole  of  the  land.  And  where  a  lease  is  placed  on  the 
whole  of  a  piece  of  land  and  the  heirs  of  the  lessor  take  pos- 
session of  it,  the  lease  holds  as  to  the  whole.  Murray  v. 
Barnhart,  117  La.  1023;  and  even  though  the  lease  may  have 
been  wrongfully  executed  as  to  the  whole,  an  acceptance  of 
the  succession  of  the  co-owner  would  cure  this  defect.  Coch- 
ran  v.  Gulf  Refining  Co.,  139  La.  1010.  And  ownership  of 
the  whole  is  not  essential  to  make  a  valid  lease  of  the  whole. 
Suence  v.  Lucas,  138  La.  770.  But  leasing  land  for  develop- 
ment for  oil  and  gas  indicates  that  the  lessor  is  dealing  with 
the  land  as  being  owned  by  him  in  severalty.  Myers  v.  Myers 
et  al,  148  La.  175.  But  such  a  lease  is  void  as  far  as  the  co- 
owner  is  concerned.  Gulf  Ref.  Co.  v.  Carroll,  145  La.  305. 

The  question  of  whether  or  not  a  vaild  lease  can  be  given 
on  an  undivided  interest  in  mineral  lands  is  not  free  from 
doubt : 

In  Spence  v.  Lucas,  138  La.  772,  the  Court  said,  arguendo 
that  a  lessor  had  a  right  to  lease  an  undivided  interest  in 
mineral  lands.  And  in  Gulf  Refining  Company  v.  Hayne  et 
al.,  138  La.  555,  where  the  question  was  not  directly  at  is- 
sue, it  was  said  that  while  "the  Court  might  recognize  the 


34  CO-OWNERS 

rights  of  plaintiff  under  the  lease  (to  an  undivided  1-3),  it 
cannot  put  it  in  actual  corporeal  possession  of  an  undivided 
interest  in  the  land  leased.  Such  right  is  a  mere  abstract 
right";  while  if  the  lease  bore  upon  specific  property,  it  might 
be  put  in  possession  of  it.  Martel  v.  Jennings-Heywood  Oil 
Syndicate,  114  La.  903,  115  La.  451. 

In  Gulf  Refining  Company  v.  Carroll,  145  La.  229,  it  is 
held  directly  that  a  co-owner  cannot  give  a  valid  lease  of  the 
whole  without  the  consent  of  his  co-owners,  and  in  that  case, 
after  reviewing  the  cases  referred  to  above,  the  Court  seems 
in  doubt  as  to  the  legality  of  a  lease  of  an  undivided  interest 
and  questions  the  rights  of  a  lessee  thereunder. 

And  in  Baird  v.  Atlas  Oil  Co.,  146  La.  1102,  where  the 
question  was  fairly  raised,  the  Court  decided  the  case  on 
other  issues  and  refused  to  pass  on  this  point.  But  in  Gulf 
Refining  Co.  v.  Hayne  148  La.  340,  the  Court  recognized 
the  rights  of  an  owner  of  a  lease  on  an  undivided  interest  in 
land  by  ordering  the  delivery  to  him  by  the  lessor  of  his  un- 
divided interest  in  the  proceeds  of  a  well  drilled  on  the  land 
by  the  lessor  in  contravention  of  the  rights  of  lessee. 

There  are  several  other  cases  where  such  leases  have  been 
passd  upon  inferentially  and  indirectly.  In  Jennings-Hey- 
wood Oil  Syndicate  v.  Home  Oil  &  Development  Co.,  Ltd., 
113  La.  383,  it  was  said  that  eviction  as  to  a  portion  of  a  lease 
would  carry  the  right  to  rescind  the  whole.  In  Elder  v.  El- 
lerbe,  135  La.  990,  the  right  was  recognized  to  sue  to  annul, 
a  lease  so  far  as  it  related  to  an  undivided  interest,  as  was 
the  case  in  Gulf  Refining  Company  v.  Hart  et  al.,  130  La. 
51,  where  suit  was  brought  to  annul  a  lease  as  to  a  19-20  in- 
terest in  same. 


CONSTRUCTION— INTERPRETATION  35 

The  logical  and  equitable  rule  should  be  that  a  lease  is  in- 
valid as  to  the  whole  unless  joined  in  or  authorized  by  the 
owners  of  the  whole. 

Known  oil  lands,  like  mines,  cannot  be  judicially  parti- 
tioned in  kind.  Gulf  Refining  Company  v.  Hayne,  138  La. 
555.  Connett  v.  Wright,  149  La 

Sec.  27.  Construction  and  interpretation. 

In  interpreting  a  lease,  the  intention  of  the  parties  must  be 
looked  to.  Jennings-Heywood  v.  Houssiere-Latreille,  119 
La.  793,  citing  Ohio  Oil  Co.  v.  Delmore  (Ind.  Sup.)  73  N.  E. 
1093,  34  L.  R.  A.  62;  and  the  intention  of  the  parties  must 
be  inferred  from  the  language  and  terms  of  the  contract. 
Jennings-Heywood  v.  Houssiere-Latreille,  127  La.  999.  For 
instance,  wrhether  a  mineral  contract  is  severable  or  joint,  de- 
pends upon  the  intention  of  the  parties  as  revealed  by  the  lan- 
guage and  subjct  matter  of  the  instrument.  Nabors  v.  Pro- 
ducrs  Oil  Co.,  140  La.  985.  And  where  a  contract  employs 
both  particular  and  general  terms  the  general  terms  will  not 
be  controlled  by  the  particular  ones  when  the  contrary  inten- 
tion is  manifest,  and  facts  of  public  notoriety  will  be  presumed 
to  have  been  known  by  the  parties  and  the  language  con- 
strued with  reference  to  such  facts.  Anse  LaButte  Oil  Co.  v. 
Babb,  122  La.  415.  But  the  intention  of  the  parties  has  noth- 
ing to  do  with  the  matter  where,  under  the  law  they  cannot 
do  what  they  intended.  Frost-Johnson  Lbr.  Co.  v.  Sailings, 
149  La.  _ 

The  language  itself  will  be  construed  by  the  court  when 
necessary  to  a  proper  understanding.  Knight  Bros.  v.  Stan- 
dard Oil  Co.,  147  La.  272. 


36  CONSTRUCTION— INTERPRETATION 

A  mineral  contract  must,  however,  be  construed  as  a  whole 
(Bush-Everett  Co.  v.  Vivian  Oil  Co..,  128  La.  886;  Escoubas 
v.  La.  Pet.  Co.,  22  A.  280),  and  the  intention  of  the  parties 
gathered  from  all  its  parts.  Calhoun  v.  Ardis,  144  La.  311. 

The  court  looks  to  the  language  used  and  the  substance  of 
a  transaction  to  determine  its  legal  effect,  and  not  to  the  word 
used  in  describing  it.  So  it  makes  no  difference  whether  the 
contract  is  termed  lease,  license,  sale,  grant,  deed,  convey- 
ance, real  right,  incorporeal  hereditament,  chattel  interest, 
right  in  land,  contract  or  any  other  name.  Long  v.  Sun  Com- 
pany, 132  La.  601;  Rives  v.  Gulf  Ref.  Co.,  133  La.  178.  But 
a  contract  will  be  construed  as  written  until  error  is  shown. 
Cook  v.  Gulf  Ref.  Co.,  127  La.  592;  and  it  is  the  law  between 
the  parties  (Dickinson  v.  Texana  Oil  Co.,  147  La.  341),  and 
when  clear  and  unambigious,  the  courts  will  not  assume  to 
correct  the  intention  of  the  parties,  who  will  not  be  heard  to 
say  their  intentions  were  other  than  those  clearly  expressed. 
DeMoss  v.  Sample,  143  La.  243.  And  where  they  have  pro- 
vided for  a  forfeiture  it  must  be  declared.  Dickinson  v.  Tex- 
ana, 147  La.  341.  And  openly  and  clearly  expressed  obliga- 
tions cannot  be  construed  as  "implied  obligations."  Prince 
et  al.  v.  Standard  Oil  Co.,  147  La.  283. 

Leases  are  construed  most  strongly  against  the  lessee. 
Rives  v.  Gulf  Rfining  Co.,  133  La.  178;  Cook  v.  Gulf  Refin- 
ing Co.,  135  La.  609;  Jennings-Heywood  v.  Houssiere-La- 
treille,  119  La.  793.  But  this  construction  does  not  apply  in 
a  suit  for  damages.  Cook  v.  Gulf  Ref.  Co.,  135  La.  609. 

The  construction  placed  upon  a  contract  by  the  parties 
themselves  has  great  weight.  Rives  v.  Gulf  Co.,  133  La.  178; 
and  a  contract  written  by  an  oil  company  will  be  construed 
as  written  by  it.  Cook  v.  Gulf,  127  La.  592. 


TERM  87 

Where  the  parties  themselves  place  their  interpretation  on 
a  lease  honestly  and  on  advice  of  competent  counsel,  they  can- 
not be  held  to  be  in  bad  faith.  Cook  v.  Gulf,  135  La.  609. 

In  Elston  v.  Atlas  Oil  Co.,  147  La.  1048,  the  Court  said 
that  contracts  will  not  be  construed  so  as  to  lead  to  absurd 
conclusions,  nor  will  the  Court  undertake  to  re-write  con- 
tracts. 

Where,  in  the  sale  of  land,  it  is  recited  that  the  mineral 
rights  are  reserved  because  they  have  been  previously  sold 
to  another  person,  it  was  held  that  this  was  applicable  only 
to  mineral  rights  previously  so  sold  and  not  other  lands,  in 
view  of  C.  C.  2474  providing  for  the  construction  of  ambig- 
uous clauses  against  the  vendor.  Frost- Johnson  Lbr.  Co.  v. 
Nabors  Oil  &  Gas  Co.,  149  La. . 

Sec.  28.  Term. 

A  lease  is  null  and  void  which  provides  for  extentions  by 
payment  of  annual  rentals  without  any  time  limit,  thus  per- 
mitting the  lessee  to  hold  the  same  perpetually,  because  "A 
lease  or  option  for  an  indefinite  term  is  a  nudum  pactum" 
Bristo  v.  Christine  Oil  &  Gas  Co.,  139  La.  312;  Norris  v. 
Snyder  &  McCormick,  139  La.  316;  Calhoun  v.  Christine 
Oil  &  Gas  Co.,  139  La.  316;  Dunham  v.  McCormick,  139  La. 
317;  Norris  v.  McCormick,  139  La.  318;  Parrot  v.  McCor- 
mick, 139  La.  318;  Williams  v.  McCormick,  139  La.  319  and 
Parrott  v.  Kirschler,  139  La.  320. 

In  Busch-Everett  v.  Vivian  Oil  Co.,  128  La.  886,  the  Court 
said  that  "  *  *  *  a  contract  of  lease  may  be  entirely 
legal  without  a  term,  or  a  term  may  be  so  indefinite  that  only 
the  Court  can  determine  the  date."  But  in  view  of  the  rule 


38  TERM 

stated  in  the  cases  first  quoted  above,  and  considering  the 
question  before  the  Court  in  the  128  La.  case,  this  expression 
apparently  means  nothing  more  than  that  a  lease  is  legal  if 
the  term  can  be  definitely  determined  and  the  term  need 
not  be  expressed  in  actual  terms  of  time.  ( See  Anse  LaButte 
Oil  Co.  v.  Babb,  122  La.  415). 

When  the  term  of  a  lease  is  conditioned  upon  the  produc- 
tion of  minerals  in  paying  quantities,  the  term  is  dependent 
upon  continuous  operations  and  ceases  when  the  operations 
cease.  Brown  v.  Producers  Oil  Co.  134  La.  672. 

The  term  of  a  lease  may  be  continued  by  the  common  con- 
sent of  the  parties.  Hudspeth  v.  Producers  Oil  Co.,  134  La. 
1013.  But  a  lease  is  not  to  be  extended  by  implication.  And 
a  lease  which  is  to  continue  during  the  time  that  oil  and  gas 
are  found  in  paying  quantities  is  at  an  end  after  the  time  dur- 
ing which  exploration  is  permitted  has  expired  and  no  oil  or 
gas  have  been  found.  Cook  v.  Gulf  Refining  Co.,  127  La. 
592,  135  La.  609. 

Where  the  term  of  a  lease,  during  which  it  may  be  kept  in 
force  by  annual  payments,  is  specified  as  five  years,  held  that 
the  particular  instrument  meant  five  years  in  addition  to  the 
first  year.  Chadwick  v.  Standard  Oil  Co.,  147  La.  668. 

A  lease  which  provides  that  it  shall  be  in  force  for  25  years 
after  the  discovery  of  oil  and  gas  and  as  much  longer  there- 
after as  oil  and  gas  are  produced  in  paying  quantities,  and 
which  requires  the  lessee  to  prosecute  diligently  the  produc- 
tion of  oil  and  gas,  will  be  annulled  where  only  one  small  well 
is  drilled  and  lessee  refuses  to  develop  further.  Green  v. 
Standard  Oil  Co.,  146  La.  935. 

The  term  for  performance  will  be  extended  where  lessee  is 


ASSIGNMENT— THIRD  PERSONS  39 

prevented  from  performing  by  the  lessor.  Gulf  Refining  Co,, 
v.  Hayne,  148  La,  340;  Standard  Oil  Co.  v.  Webb,  149  La. 
;  Keene  v.  Logan,  147  La.  80. 

Sec.   29.   Assignment — Third  Parties,  etc. 

It  has  never  been  seriously  questioned  that  a  lease  is  as- 
signable and  it  is  not  necessary  that  the  contract  state  that  it 
is  assignable.  Anse  La.  Butte  v.  Babb,  122  La.  415,  and  a 
lease  giving  a  person  the  exclusive  right  to  drill  on  land  does 
not  impose  a  personal  obligation  requiring  his  personal  skill 
and  attention,  which  cannot  be  assigned.  Anse  La.  Butte  Oil 
&  Mining  Co.  v.  Babb,  122  La.  415;  Rives  v.  Gulf  Refining 
Co.,  133  La.  178,  citing  Heller  v.  Vailey,  28  Ind.  555;  63  N. 
E.  490,  where  it  was  said  that  a  lease  did  not  grant  a  mere 
personal  privilege,  but  an  assignable  interest  in  land. 

The  transferee  of  a  lessee  steps  into  his  shoes.  Houssiere- 
Latrille  v.  Jennings-Heywood,  115  La.  107;  Rowe  v.  Atlas 
Oil  Company,  147  La.  1100.  And  the  same  as  to  the  assignee 
of  the  lessor.  State  ex  rel.  Jennings-Heywood  v.  DeBaillon, 
113  La.  572;  Hudspeth  et  al.  v.  Producers  Oil  Company,  134 
La.  1013;  Standard  Oil  Company  v.  Webb,  149  La.  -  -. 

And  the  law  requires  no  registry  of  the  actions  of  parties 
under  recorded  leases,  subsequent  purchasers  being  obliged  to 
inquire  as  to  such  action.  Bush-Everett  Co.  v.  Vivian  Oil 
Co.,  128  La.  886;  Hudspeth  v.  Producers  Oil  Co.,  134  La. 
owner.  Baird  v.  Atlas  Oil  Company,  146  La.  1091.  A  former 
owner  cannot  extend  a  lease  on  lands  which  he  has  sold  and 
by  paying  the  price  of  the  extensions  to  his  vendor,  affect  the 
rights  of  parties  who  have  acquired  a  new  lease  from  the  ven- 
dor, and  properly  recorded  it.  Burkholder  v.  Consolidated- 
Prog.  Oil  Corp.,  149  La 


40  ASSIGNMENT— THIRD  PERSONS 

But  a  person  purchasing  a  lease,  who  acquires  a  good 
record  title  need  only  inquire  as  to  the  rights  of  the  present 
owner.  Baird  v.  Atlas  Oil  Company,  146  La.  1091. 

A  lease  not  recorded  is  null  and  void  as  to  third  parties. 
Baird  v.  Atlas  Oil  Company,  146  La.  1091,  but  on  the  other 
hand,  the  recordation  of  the  contract  protects  all  of  the  sub- 
stantial rights  granted  under  it,  and  where  an  owner  sells 
land  affected  by  a  valid  lease  the  purchaser  acquires  subject 
to  the  lease  and  can  convey  no  greater  right  than  he  acquires. 
Standard  Oil  Co.  v.  Webb,  149  La.  -  -;  State  v.  DeBaillon, 
113  La.  572. 

A  lease  of  the  whole  property  by  a  co-owner  when  duly 
registered  bears  on  the  property  sold  in  the  hands  of  the 
transferree.  Spence  v.  Lucas,  138  La.  763. 

Lands  pass  to  the  heirs  of  a  lessor  subject  to  his  lease. 
Cochran  v.  Gulf  Refining  Co.,  139  La.  1010  . 

A  person  acquiring  lands  at  sheriff's  sale,  subject  to  a  lease, 
has  the  same  rights  as  the  original  owner  to  annul  the  lease. 
Gray  v.  Spring,  129  La.  345. 

A  description  in  an  agreement  to  sell  leases  may  be  suffi- 
cient between  the  parties  but  not  sufficient  to  give  notice  to 
third  persons,  and  such  third  persons  cannot  be  affected  by 
a  notice  of  Us  pcndens  recorded  after  their  acquisition.  Sny- 
der  v.  Wilder,  146  La.  811. 

Where  a  person  acquires  a  second  lease  or  top  lease  on 
lands  and  the  first  leases  are  null  and  void,  such  new  lease 
takes  precedence  over  the  first  ones  as  well  as  all  leases  subse- 
quent thereto.  Raines  v.  Dunson,  145  La.  543;  Martel  v. 
Jennings-Heywood  Oil  Syndicate,  113  La.  351. 


DIVISIBILITY  41 

Recording  a  conveyance  to  an  attorney  of  a  present  inter- 
est in  mineral  rights  in  consideration  of  services  to  be  ren- 
dered in  respect  to  those  rights  protects  the  attorney  against 
subsequent  purchasers  from  the  client,  without  a  notice  to  the 
adverse  party,  as  the  same  is  governed  by  the  conveyance 
laws  and  not  the  special  statute  in  regard  to  attorney's  liens. 
McClung  v.  Atlas  Oil  Co.,  148  La.  674. 

A  person  who  buys  a  lease  subject  to  the  outcome  of  a  suit, 
after  the  filing  of  notice  of  Us  pendens,  is  bound  by  the  judg- 
ment rendered.  Where  however,  void  leases  are  subsequent- 
ly validated,  one  acquiring  a  new  lease  before  such  valida- 
tion would  prevail  over  them.  Mohawk  Oil  Company  v. 
Layne,  270  Fed.  841). 

The  correction  of  a  mineral  deed,  so  as  to  include  land  not 
originally  described,  did  not  operate  to  the  prejudice  of  a 
third  party  to  whom  land  has  been  conveyed  without  reser- 
vation of  mineral  rights  subsequent  to  the  execution  of  the 
mineral  deed,  but  prior  to  correction,  or  its  successor  in  in- 
terest. Frost-Johnson  Lbr.  Co.  v.  Nabors  Oil  &  Gas  Co., 
149  La.  -  -. 

Sec.  30.   Divisibility. 

It  was  said  in  Murray  v.  Barnhart,  117  La.  1030,  that  the 
obligation  to  drill  one  well  on  a  tract  of  land  is  indivisible 
and  therefore  the  obligation  to  deliver  the  land  is  indivisible. 
When  the  obligation  of  one  party  is  indivisible,  the  obligation 
of  the  other  party  is  likewise  indivisible.  See  Caddo  Oil  & 
Mining  Co.,  134  La.  701;  McClendon  v.  Busch-Everett  Co., 
138  La.  722. 

And  where  heirs  take  possession  of  land  upon  which  their 


42  DIVISIBILITY 

ancestor  has  placed  a  lease  and  sell  a  portion  of  the  land,  as 
the  lease  is  indivisible,  they  cannot  alone  ask  its  recission. 
Cochran  v.  Gulf  Ref.  Co.,  139  La.  1010. 

Where  the  owners  of  several  tracts  join  in  a  joint  lease  for 
a  gross  price,  a  joint  obligation  on  the  part  of  the  lessors  is 
created,  and  an  obligation  to  commence  a  well  cannot  be  con- 
strued as  meaning  a  well  on  the  tract  of  each  party.  A  con- 
tract by  which  several  parties  obligate  themselves  to  do  the 
same  thing  creates  a  joint  obligation  on  their  part,  and  a  con- 
tract whereby  something  is  to  be  done  for  the  common  bene- 
fit of  several  persons  creates  an  obligation  that  is  joint  and 
inseverable  as  to  the  obligees.  Nabors  v.  Producers  Oil  Co., 
140  La.  985,  also  Nabors  Oil  &  Gas  Co.  v.  McCormick  et  al., 
145  La.  88. 

A  joint  lease  made  by  several  land  owners  is  indivisible 
and  cannot  be  annulled  without  the  consent  of  all,  but  where 
the  lease  itself  provides  for  its  forfeiture,  the  failure  of  one 
of  the  lessors  to  demand  it  does  not  affect  the  right  of  the 
other  to  have  it  annulled.  Green  v.  Standard  Oil  Co.,  146 
La.  935. 

In  Hart  v  Standard  Oil  Co.,  146  La.  885,  the  facts  dis- 
closed that  under  a  lease  providing  for  development  for  oil 
and  gas,  the  gas  rights  alone  were  transferred  by  the  lessee 
to  a  company  that  abandoned  the  gas  rights  and  disclaimed 
any  interest  therein.  Quaere:  How  about  the  divisibility 
of  a  lease  as  to  gas  and  oil  rights,  and  what  is  the  effect  on 
the  oil  rights  where  lessee  transfers  the  gas  rights  to  a  per- 
son who  abandons  them  and  fails  to  develop? 

Where  the  lands  of  two  parties  have  been  leased  under  a 
single  lease  and  the  lessee  and  one  of  the  lessors  enter  into  a 


CONSIDERATION  43 

new  lease  as  to  the  lands  of  that  lessor  only,  and  the  other 
lessor  is  not  consulted,  the  first  lease  will  be  considered  to 
have  been  abandoned  and  no  longer  binding  on  the  lessor  who 
was  thus  ignored.  Jennings-Heywood  Oil  Syndicate,  113 
La.  351. 

In  Rains  v.  Dunson,  145  La.  541,  the  Court  discussed  a 
provision  in  a  community  lease  relative  to  drilling  a  well  on 
any  land  within  a  certain  radius,  and  it  was  held  that  where 
the  lease  of  an  owner  of  a  single  tract  was  illegal,  he  was  not 
estopped  by  performance  on  another  tract,  since  he  was 
powerless  to  prevent  the  same,  the  Court  expressly  refrain- 
ing from  any  indication  that  a  community  lease  contract, 
properly  drawn,  would  be  illegal.  See  Baird  v.  Atlas  Oil  Co., 
146  La.  1100;  Rowe  v.  Atlas  Oil  Co.,  147  La.  37;  Wilder  v. 
Norman,  147  La.  413;  Burkholder  v.  Consolidated-Prog.  Oil 
Corp.  149  La 

Sec.  31.  Consideration. 

There  is  some  confusion  in  viewing  the  jurisprudence  of 
Louisiana  upon  the  question  of  the  consideration  for  mineral 
contracts  and  leases,  owing  to  its  association  with  certain 
principles  relative  to  development  and  the  peculiar  principles 
relating  to  the  potestative  condition,  and  the  reader  is  re- 
ferred to  the  sections  dealing  with  development  and  the  po- 
testative condition  for  a  fuller  discussion  of  those  details ;  the 
purpose  of  this  section  being  to  consider  the  question  of  con- 
sideration as  far  as  possible  without  relation  to  other  sub- 
jects. 

The  following  principles  have  been  applied  to  the  consid- 
eration for  the  granting  of  mineral  contracts,  for  continuing 
them  and  for  terminating  them : 


44  CONSIDERATION 

The  civil  law,  differently  from  the  common  law,  requires 
that  the  consideration  of  a  contract  be  serious,  hence  the  tra- 
ditional one  dollar  consideration  of  the  common  law  is  not 
considered  under  the  civil  law  as  a  serious  consideration. 
Murray  v.  Barnhart,  117  La.  123;  Berl  v.  Kehoe,  130  La. 
1020;  Caddo  Oil  &  Mining  Co.  v.  Producers  Oil  Co.,  134  La. 
701;  Gray  v.  Spring,  129  La.  345;  the  difference  between  the 
two  systems  is  so  wide  that  common  law  cases  have  no  appli- 
cation. Goodson  v.  Vivian  Oil  Co.,  129  La,*  955. 

And  the  same  may  be  said  of  two  dollars.  Murray  v.  Barn- 
hart,  117  La.  123.  And  the  fact  that  a  lease  recites  that  one 
dollar  is  deemed  by  the  parties  thereto  to  be  sufficient  adds 
nothing  to  the  want  of  consideration,  because  such  a  want 
cannot  be  supplied  by  a  mere  declaration.  Long  v.  Sun  Co., 
132  La.  601. 

In  Brown  v.  Producers  Oil  Co.,  134  La.  672,  the  sum  of 
twenty  dollars  was  treated  as  not  a  serious  consideration  for 
either  granting  or  terminating  a  valuable  lease. 

And  the  mere  promise  of  a  royalty  in  the  event  oil  is  dis- 
covered, without  an  obligation  to  drill,  is  no  consideration. 
Goodson  v.  Vivian  Oil  Co.,  129  La,  955;  Berl  v.  Kehoe,  130 
La.  1020;  while  in  Martel  v.  Jennings-Heywood,  114  La. 
351,  a  lease  for  one  dollar  and  a  promise  of  a  royalty  was 
considered  as  a  mere  license,  revocable  at  will.  And  in  Wil- 
der v.  Norman,  147  La.  413,  it  was  held  that  the  promise  of 
development  without  an  obligation  to  develop  is  no  consider- 
ation for  a  lease.  Also  Hinton  v.  Smith,  149  La. 

In  McClendon  v.  Busch-Everett  Co.,  138  La.  722,  the 
Court  said  that  in  the  absence  of  proof  the  Court  cannot  as- 
sume that  a  substantial  consideration  received  by  a  lessor  is 


CONSIDERATION  45 

inadequate,  and  that  some  other  consideration  was  implied 
or  intended  as  the  real  cause  or  consideration  of  the  contrast. 

While  the  authorities  previously  quoted  announce  as  a  gen- 
eral rule  of  the  Civil  law  the  inhibition  against  a  price  not 
serious,  this  principle  finds  its  place  in  our  law  in  Civil  Code 
Art.  2464,  which  provides  merely  that  the  consideration  for  a 
sale  must  be  serious  and  ought  not  to  be  out  of  all  proportion 
with  the  value  of  the  thing,  saying  nothing  about  other  kinds 
of  contracts. 

There  has  been  a  tendency  to  use  interchangably  the  terms 
"serious"  and  "adequate"  and  to  intimate  that  by  a  serous 
consideration,  an  adequate  one  may  be  meant.  It  is  respect- 
fully urged  that  it  should  not  be  loss  sight  of  that  inadequacy 
of  consideration  should  be  reached  by  the  provisions  of  law 
relating  to  lesion,  error  and  fraud  (See  Butler  v.  Marston, 
145  La.  41),  and  that  it  is  not  the  inadequacy  of  price  which 
the  provisions  of  the  civil  law  seek  to  remedy  in  referring  to 
the  seriousness  of  consideration,  but  the  abuses  incident  to 
reciting  as  a  consideration  for  a  sale  a  price  so  small  that  the 
parties  consider  it  unimportant,  or  do  not  intend  that  it  be 
paid  at  all  and  make  the  recitation  merely  as  a  matter  of 
form.  For  instance,  the  sale  of  a  piece  of  property  valued 
at  one  thousand  dollars  for  one  dollar  would  fall  clearly  within 
the  rule  ,but  its  sale  for  two  hundred  dollars  would  not  in- 
volve the  disrepancy  referred  to,  because  such  a  sum  would 
be  serious  and  would  be  paid  although  it  might  be  inade- 
quate, and  the  larger  the  transaction  involved  and  the  greater 
the  sum  actually  paid  the  greater  the  difficulty  in  declaring 
it  to  be  not  serious. 

In  Saunders  v.  Bush-Everett  Co.,  138  La.  1049,  the  pay- 
ment of  an  annual  rental  amounting  to  three  per  cent  on  wild- 


46  CONSIDERATION 

cat  lands  of  a  value  of  five  dollars  an  acre  was  considered  a 
serious  consideration  and  the  Court  said:  "Whether  the 
consideration  is  adequate  or  inadequate  is  a  question  with 
which  the  Courts  have  no  concern  where  neither  error  or 
fraud  are  alleged  or  shown."  And  in  Bush-Everett  Co.  v. 
Vivian  Oil  Company,  128  La.  886,  it  was  said  that  defendants 
had  paid  for  all  they  received,  where  they  had  paid  for  a  lease 
$345.00  cash  and  $115.00  a  quarter  rentals.  In  McClendon 
v.  Bush-Everett  Co.,  138  La.  722,  $300.00  in  cash  and  from 
$100.00  to$200.00  a  year  was  termed  "adequate",  to  support 
the  lease. 

It  has  been  stated  in  several  cases  that  the  real  considera 
tion  for  a  mineral  lease  is  the  obligation  to  develop.  Jennings 
Heywood  v.  Houssiere-Latreille,  119  La.  793,  and  Martel  v. 
Jennings-Heywood,  114  La.  351,  citing  numerous  authori- 
ties; Murray  v.  Barnhart,  117  La.  1023;  Goodson  v.  Vivian 
Oil  Co.,  129  La.  955;  Brown  v.  Producers  Oil  Co.,  134  La. 
672. 

But  this  rule  cannot  apply  where  a  substantial  cash  con- 
sideration has  been  paid  for  a  lease.  McClendon  v.  Bush- 
Everett  Co.,  138  La.  722;  Long  v.  Sun  Company,  132  La. 
601;  Cochran  v.  Gulf  Refining  Co.  139  La.  1010. 

After  oil  is  discovered,  however,  the  main  consideration 
is  development  for  oil  and  gas  and  the  lessee  must  then  either 
develop  with  diligence  or  give  up  the  lease.  Green  v.  Stan- 
dard Oil  Co.,  146  La.  935;  Brown  v.  Producers  Oil  Co.,  134 
La.  672. 

No  consideration  is  necessary  for  the  reservation  or  ex- 
ception of  minerals  from  a  sale  of  land  as  the  part  reserved 
or  excepted  is  not  involved  .DeMoss  v.  Sample,  143  La.  243. 


POTESTATIVE   CONDITION  47 

Sec.  32.  Potestative  condition. 

Perhaps  the  most  troublesome  legal  phase  of  the  construc- 
tion and  interpretation  of  mineral  contracts  in  Louisiana  is 
that  which  involves  the  potestative  condition.  From  the  first 
oil  and  gas  case  to  the  latest,  the  cry  of  "potestative  condition" 
has  been  made,  and  much  confusion  has  arisen  in  the  applica- 
tion of  the  law. 

The  principal  points  of  attack  have  been:  (a)  Insuffi- 
cient consideration;  (b)  failure  to  express  any  obligation  to 
develop;  and  (c)  the  reservation  of  the  right  to  abandon  the 
lease  at  any  time ;  it  having  been  suggested  that  each  involved 
the  potestative  condition. 

The  Courts  have  held  a  number  of  leases  invalid  on  the 
three  grounds,  but  the  distinction  drawn  between  them  has 
not  been  clear  nor  certain,  and  it  is  difficult  to  follow  the  rea- 
soning of  the  opinions  in  analyzing  the  various  cases  and  en- 
deavoring to  reconcile  them. 

The  statutory  provisions  relating  to  the  potestative  condi- 
tion are  as  follows: 

Civil  Code  2024.  "The  potestative  condition  is  that 
which  makes  the  execution  of  the  agreement  depend  on  an 
event  which  it  is  in  the  power  of  the  one  or  the  other  of  the 
contracting  parties  to  bring  about  or  hinder." 

Civil  Code  2034.  "Every  obligation  is  null  that  has 
been  contracted  on  a  potestative  condition  on  the  part  of  him 
who  binds  himself." 

Civil  Code  2035.  "The  last  preceding  article  is  limited 
to  potestative  conditions  which  make  the  obligation  depend 
solely  on  the  exercise  of  the  obligor's  will  but  if  the  condition 
be  that  the  obligor  shall  do  or  not  do  a  certain  act,  although 
the  doing  or  not  doing  of  the  act  depends  on  the  will  of  the 


48  POTESTATIVE    CONDITION 

obligor,   yet  the   obligation   depending   on   such   condition   is 
not  void." 

Bouviers'  Law  Dictionary,  p.  583  (3rd.  Rev.)  gives  the 
following  definition  from  Potheir  on  Obligations:  "Potes- 
tative  conditions  are  those  which  are  in  the  power  of  the  per- 
son in  whose  favor  the  obligation  was  contracted ;  as,  If  I  con- 
tract to  give  my  neighbor  a  sum  of  money  in  case  he  cuts 
down  a  tree." 

Article  2024  is  a  translation  from  the  Code  Napoleon.  It 
is  followed  by  Article  2034  which  is  also  a  translation  from 
the  Code  Napoleon,  and  while  this  article  says  that  all  obliga- 
tions contracted  on  a  potestative  condition  are  null,  this  lan- 
guage is  controlled  by  the  following  article,  2035,  which 
makes  certain  distinctions  and  exceptions.  This  article 
(2035)  writes  into  our  Code  some  of  the  interpretations  of 
the  French  law,  and  both  under  the  wording  of  these  provi- 
sions of  our  Code,  and  many  of  the  French  authorities,  it  is 
not  every  potestative  condition  that  nullifies  a  contract. 

And  according  to  the  French  interpretations,  many  of  the 
authorities  agree  that  the  potestative  condition  referred  to 
in  the  French  law  and  the  Code  Napolon  is  that  which  de- 
pends upon  the  frivolous  and  capricious  exercise  of  the  will, 
such  as  a  stipulation  that  a  thing  will  or  will  not  be  done  upon 
the  drinking  a  bottle  of  wine  or  the  wearing  of  a  certain  hat; 
and  that  the  inhibition  against  the  potestative  condition  does 
not  apply  where  the  exercise  of  the  will  has  for  its  object  the 
accomplishment  of  a  substantial,  physical  thing,  such  as  where 
a  man  agrees  that  if  he  plants  certain  trees  which  obstruct  a 
view  from  the  adjoining  estate  that  he  will  pay  a  sum  of 
money;  nor  does  it  apply  where  the  exercise  of  the  will  would 
result  in  a  loss  to  the  obligor  or  where  the  contract  provides 
for  a  gain  to  the  obligee. 


POTESTATIVE  CONDITION  49 

The  Supreme  Court  of  Louisiana  considered  these  inter- 
pretations of  the  potestative  condition  and  entered  into  a  full 
discussion  of  the  matter  in  the  case  of  Anse  LaButte  Oil  & 
Mineral  Co.  v.  Babb,  122  La.  415. 

That  was  a  case  where  the  defendant  had  given  to  the 
plaintiff  (or  its  assignor)  the  exclusive  right  to  explore  his 
land  and  had  provided  that  in  case  of  success  on  defendant's 
land,  or  that  of  two  other  persons,  that  plaintiff  could  pur- 
chase defendant's  land  during  a  certain  period  for  a  certain 
price,  and  plaintiff  sued  for  specific  performance,  whereupon 
he  was  met  with  the  defense  of  the  "potestative  condition," 
(which  had  already  been  successfully  urged  in  previous  oil 
litigation)  on  the  ground  that,  as  plaintiff  had  a  similar  con- 
tract covering  one  of  the  other  tracts,  he  could  at  will  pre- 
vent the  exploration  of  defendant's  tract  by  refraining  from 
drilling.  The  Court  said: 

"The  next  defense  is  that  the  condition  upon  which 
(plaintiff's  assignor)  agreed  to  buy  the  land  in  case  of  suc- 
cess in  finding  commercial  substances  upon  it  or  upon  the 
land  of  (the  two  other  parties)  was  potestative  on  his  part, 
since  he  might  have,  at  will,  prevented  success  by  abstaining 
from  drilling  upon  any  of  the  said  lands,  and  renders  the 
contract  null. 

"True,  he  secured  by  the  same  contract  the  exclusive 
right  to  drill  upon  the  Babb  land,  and  had  already  secured, 
or  secured  on  the  same  day  *  *  *  the  ownership  of  the 
Begnaud  land,  and  may,  therefore,  in  a  sense,  be  said  to  have 
been  in  a  position  to  defeat  the  condition  at  will  as  to  these 
lands  by  abstraining  from  drilling  upon  them ;  but  the  Breaux 
land  remained,  which  he  neveV  controlled.  *  *  *  In 
connection  with  this  Breaux  land,  the  condition  can  in  no 
sense  be  said  to  have  been  potestative.  Anybody  might  have 
drilled  upon  it — Breaux  or  anybody  else,  and  brought  success 
and  the  fulfillment  of  the  condition. 


50  POTESTATIVE   CONDITION 

"Nor  is  this  all.  It  is  not  every  potestative  condition  that 
renders  null  the  obligation  to  which  it  is  attached.  Article 
2035  of  the  Civil  Code,  speaking  of  Article  2034,  according 
to  which  "every  obligation  is  null  that  has  been  contracted  on 
a  potestative  condition  on  the  part  of  him  who  binds  himself, 
says:  (And  then  the  Court  quotes  the  article). 

"If  this  Article  2035  were  taken  literally,  the  contract 
would  not  be  null,  no  matter  to  what  extent  the  act  upon 
which  the  obligation  depended  might  be  at  the  will  of  the 
obligor.  The  civilians  explain,  however  that  the  act,  upon 
the  doing  or  not  doing  of  which  the  obligation  is  made  to 
depend,  must  not  be  so  easy  of  performance  or  so  insignifi- 
cant in  reality  to  leave  matters  to  the  mere  will  of  the  obligor ; 
as,  for  example,  if  the  obligation  was  to  depend  upon  whether 
the  obligor  'raised  his  arm  or  drank  a  glass  of  wine,  or  wore 
his  gray  hat,'  De  Carpentier  et  Du  Saint,  Rep.  de  Droit  Fran- 
caise,  Vo.  Condition,  No.  100.  The  question  whether  the  act 
upon  which  the  obligation  is  to  depend  is,  or  not,  of  the  char- 
acter here  described,  is  one  of  fact,  to  be  determined  from 
the  particular  circumstances  of  each  case.  Id.  No.  101. 

"In  the  instant  suit,  the  only  only  way  in  which  drilling, 
and  the  consequent  possible  fulfillment  of  the  condition  could 
have  been  prevented  upon  the  Breaux  land,  would  have  been 
by  securing  control  of  the  land  by  some  onerous  contract. 
The  facts  of  the  case  leave  no  doubt,  therefore,  that  the  ful- 
fillment of  the  condition  was  not  purely  potestative. 

"Even  as  to  the  Babb  and  Begaud  lands,  the  plaintiff 
company  could  not  have  abstrained  from  drilling  upon  them 
(in  case  of  non-success  on  the  Breaux  land)  without  renounc- 
ing the  benefits  which  had  been  sought  to  be  secured  by  en- 
tering into  the.  contracts  with  reference  to  them  and  renounc- 
ing the  benefit  of  the  large  expense  incurred;  and  the  renun- 
ciation would  not  have  been  such  insignificant  act  as  is  de- 
scribed above  as  depending  solely  upon  the  will  of  the  ob- 
ligor, namely,  abstraining  from  raising  one's  arm,  or  drinking 
a  glass  of  wine,  or  wearing  one's  gray  hat,  but  would  have 
meant  the  sacrifice  of  important  rights" 


POTESTATIVE  CONDITION  51 

And  the  Court  held  that  such  an  agreement  was  not  null. 
But  a  re-hearing  was  had,  and  the  contention  was  renewed 
that  the  contract  contained  a  potestative  condition,  and  the 
Court  then  said: 

"It  is  next  contended  that  the  contract  was  null  because 
without  consideration  and  dependent  upon  a  potestative  con- 
dition. We  think  that  a  perfect  answer  to  this  contention  is 
that,  conceding  that  the  condition  was  potestative  in  the  be- 
ginning, it  was  actually  performed  by  the  grantee  and  his  as- 
signs at  a  great  expense,  and  with  the  active  assistance  of  the 
defendant. 

"A  condition  which  has  been  fulfilled  ceases  to  be  potes- 
tative. Murray  v.  Earnhardt,  117  La.  1023,  42  So.  489." 

The  analysis  of  the  potestative  condition  in  the  original 
opinion  seems  to  be  correct,  yet  from  the  expressions  on  re- 
hearing doubt  is  left  as  to  its  authority,  and  many  other  cases 
seem  to  be  involved  in  the  same  confusion.  These  cases  will 
be  considered  seriatim : 

The  first  case  involving  the  potestative  condition  is  the 
first  oil  and  gas  case  to  come  before  the  Court.  Escoubas  v. 
Louisiana  Petroleum  &  Coal  Oil  Co.,  22  A.  280,  where  the 
right  to  explore  certain  lands  was  granted  for  a  considera- 
tion— $20,000.00  promised  to  be  paid,  and  the  time  for  ex- 
ploration having  expired,  an  extension  was  granted  without 
further  consideration,  except  for  the  stipulation  that  while 
the  lessee  would  continue  to  work  no  forfeiture  would  be  de- 
clared. The  Court  stated  this  constituted  a  potestative  con- 
dition because  the  lessees  were  not  obligated  to  drill  or  con- 
tinue work. 

In  the  next  case  (Martel  v.  Jennings-Heywood  Oil  Syndi- 
cate, 114  La.  351),  the  Court  stated  that  a  lease  for  99  years 


52  POTESTATIVE  CONDITION 

for  $1.00  and  a  promised  royalty  on  each  barrel  of  oil  pro- 
duced, not  binding  the  lessee  to  develop,  was  a  mere  permit 
or  license,  revocable  and  terminable  at  will.  This  case  was 
later  discussed  in  Saunders  v.  Busch-Everett  Co.,  138  La. 
1049,  where  it  was  said,  "the  Court  held,  in  effect,  that  it 
(the  lease)  was  a  nudum  pactum,  as  the  grantee  gave  no  con- 
sideration and  bound  itself  to  nothing." 

The  next  case  is  that  of  Houssiere-Latreille  Oil  Co.  v.  Jen- 
nings-Heywood  Oil  Syndicate,  115  La.  107,  which  was  a  pos- 
sessory action,  in  which,  however,  the  Court  considered  the 
validity  of  the  lease  vel  non.  The  final  opinion  was  rendered 
on  rehearing  in  which  the  Court  "re-stated"  its  position  on 
the  first  hearing,  to-wit: 

"A  contract  purporting  to  be  a  lease  for  a  term  of  ten 
years  of  mineral  rights  in  a  forty  acre  tract  of  land  in  an 
unproved  part  of  the  county,  whereby  the  contractor  agrees 
to  commence  operations  within  six  months,  or  pay  $50.00 
quarterly,  in  advance,  for  each  additional  three  months  such 
operations  are  delayed  until  an  oil  well  is  completed,  and 
whereby  he  is  given  the  right  to  remove  his  machinery  at  any 
time  and  to  cancel  the  contract  on  payment  of  $100.00  at  any 
time,  and  whereby,  in  the  event  of  the  discovery  of  oil  and 
gas,  the  gross  yield  is  to  be  shared,  in  certain  proportions, 
by  the  contracting  parties,  is  not  void  upon  its  face  for  want 
of  mutuality  or  as  containing  a  potestative  condition." 

This  matter  was  later  passed  upon  in  the  District  Court 
in  another  action,  but  in  the  meantime  the  case  of  Murray  v. 
Barnhart,  117  La.  1023,  came  before  the  Supreme  Court  and 
it  was  held : 

''That  the  civil  law,  differently  from  the  common  law, 
requires  that  the  consideration  of  a  contract  be  serious,  and 
not  all  out  of  proportion  with  the  value  of  the  contract. 
Hence,  in  a  contract  of  more  than  $100.00  in  value,  the  tra- 


POTESTATIVE  CONDITION  53 

ditional  $1.00  consideration  of  a  common-law  contract  is 
looked  upon  by  the  civil  law  as  not  being  a  serious  consider- 
ation at  all.  And  the  same  may  be  said  of  $2.00  for  the  priv- 
ilege of  retiring  at  any  time  from  such  a  contract. 

"Therefore,  in  an  oil  and  gas  lease,  the  obligation  of  the 
lessee  to  complete  one  well  within  one  year  will  be  held  to  be 
purely  potestative,  and  as  such  to  entail  the  nullity  of  the 
contract,  where  he  at  the  same  time  reserved  to  himself  the 
right  to  retire  from  the  contract  at  any  time  on  paying  $2.00 
and  this,  notwithstanding  that  this  consideration  is  stated  to 
be  $1.00  cash  in  hand  paid,  receipt  whereof  is  acknowledged." 

And  this  case  is  differentiated  from  the  preceding  one 
(Houssiere-Latreille  v.  Jennings-Heywood,  115  La.  107)  be- 
cause, as  the  Court  said,  in  that  case  the  lease  provided  for 
$100.00  for  cancellation,  which  the  Court  deemed  sufficient, 
while  in  this  case  the  lease  only  provided  $2.00. 

The  case  of  Jennings-Heywood  Oil  Syndicate  v.  Hous- 
siere-Latreille Oil  Co.,  119  La.  793,  then  came  before  the 
Court  for  the  second  time  time,  whereupon,  in  passing  upon 
the  same  lease  considered  in  the  first  case,  the  Supreme  Court 
adopted  the  expressions  in  Murray  v.  Barnhart  relative  to 
the  insufficient  consideration,  and  held  that  where  a  lease  was 
granted  for  the  "sole  and  only"  purpose  of  development  that 
a  consideration  of  $50.00  a  quarter  for  delay  and  $1.00  for 
cancellation  was  inconsiderable  and  therefore  there  was  no 
contract  because  the  lessor  was  obligated  and  the  lessee  was 
not. 

The  conflict  in  these  cases  caused  much  confusion  and  the 
matter  was  considered  by  the  court  four  times,  as  in  each 
case  there  were  original  hearings  and  re-hearings,  and  Mur- 
ray v.  Barnhart  sought  to  differentiate  the  115  La.  case  with- 
out overruling  it,  while  the  119  La.  case  adopted  the  prin- 


54  POTESTATIVE  CONDITION 

ciples  announced  in  Murray  v.  Barnhart  for  the  purpose  of 
virtually  overruling  the  115  La.  case.  And  the  construction 
as  stated  in  the  119  La.  case,  and  in  one  or  two  other  in- 
stances, that  the  familiar  clause  in  a  lease  for  the  "sole  and 
only  purpose"  deals  with  development,  seems  rather  strained 
as  that  clause  on  its  face  sems  to  limit  the  lessee  in  the  use 
of  the  land  only.  In  other  words,  the  lessee  is  to  use  the  land 
not  for  agricultural  purposes,  or  for  the  purpose  of  erecting 
other  works  thereon,  but  for  the  "sole  and  only  purpose"  of 
his  oil  and  gas  operations. 

The  case  of  Saunders  v.  Busch-Everett  Co.,  138  La.  1049, 
which  attempts  to  reconcile  all  previous  cases,  in  reviewing 
the  115  La.  case  and  the  119  La.  case  says  that  in  the  115  La. 
case  the  views  of  the  Court  were  fairly  stated  in  the  language 
previously  quoted  herein,  and  that  after  the  case  went  back 
to  the  District  Court  and  was  tried  it  was  then  held  that  the 
sole  object  was  to  explore  the  land,  and  as  the  lessee  was  left 
at  liberty  to  do  so  or  not,  at  his  option,  it  was  no  contract  bind- 
ing upon  the  lessee;  but  that  if  there  was  a  contract  it  was 
an  option  which  expired  because  not  exercised,  or  a  commu- 
tative contract  which  was  breached  by  the  lessee  failing  to  do 
within  the  term,  or  an  alternative  obligation  to  explore  or 
pay,  neither  of  which  was  done,  etc. 

After  the  119  case  came  Anse  La  Butte  v.  Babb,  122  La. 
415,  which  has  been  referred  to  already,  and  in  which  the 
plea  of  "potestative  condition"  seems  to  have  met  with  no 
success. 

In  128  La.  886,  Busch-Everett  Co.  v.  Vivian  Oil  Co.,  it  was 
said  that  where  a  contract  provides  a  substantial  cash  con- 
sideration and  for  the  payment  of  rentals,  such  a  contract  is 


POTESTATIVE  CONDITION  55 

"synallagmatic"  and  does  not  as  a  whole  contain  a  potesta- 
tive  condition,  for  the  lessee  "did  not  retain  the  right  to  put 
an  end  to  the  contract  at  their  will";  and  this  case  further 
states  that  there  is  nothing  in  the  1 19  La.  case  or  in  Murray 
v.  Barnhart  to  the  contrary.  Aside  from  these  expressions, 
however,  the  case  was  decided  on  the  particular  point  that 
"after  performance  it  is  too  late  to  invoke  the  potestative  con- 
dition, even  if  we  concede  that  such  a  condition  existed." 

Next  comes  Gray  v.  Spring,  129  La.  345,  where  it  was  said 
that  a  lease  of  $1.00  which  reserved  the  right  at  any  time  to 
surrender  the  lease  and  be  released  from  all  money  due  and 
conditions  unfilled  "is  null  and  void  as  the  lessee  is  bound  to 
nothing."  And  in  Goodson  v.  Vivian  Oil  Co.,  129  La.  966, 
it  was  held  that  where  there  was  no  consideration  but  a  prom- 
ised royalty  and  the  lessee  reserved  the  right  to  terminate 
the  lease  at  any  time  and  remove  its  machinery,  etc.,  there 
\vas  no  consideration  and  the  lease  was  void,  citing  Murray 
v.  Barnhart  as  authority. 

In  Berl  v.  Kehoe,  130  La.  1020,  the  Court  held  that  a  lease 
without  cash  consideration,  and  containing  a  mere  promise 
of  a  royalty  without  obligation  to  drill  ,and  which  reserves 
the  right  to  remove  at  any  time  all  property  placed  on  the 
lease,  etc.,  is  void  for  want  of  consideration.  And  it  was 
stated  that  the  case  fell  within  the  ruling  in  Martel  v.  Jen- 
nings-Heywood  v.  Houssiere-Latreille,  119  La.  851  and 
Goodson  v.  Vivian  Oil  Co.,  129  La.  955. 

In  Long  v.  Sun  Co.,  132  La.  601,  the  lease  was  for  $1.00 
and  the  obligation  to  pay  lOc  an  acre  per  year  for  delay,  with 
the  reservation  that  the  lessee  could  terminate  upon  paying 
$1.00,  but  requiring  a  six  year  notice  of  termination  on  the 


66  POTESTATIVE  CONDITION 

part  of  the  lessor.  The  Court  held  that  the  contract  contained 
the  postestative  condition  as  the  contract  depended  entirely 
on  the  will  of  the  lessee. 

A  lease  was  set  aside  in  Brown  v.  Producers  Oil  Co.,  134 
La.  672,  which  provided  for  a  $20.00  cash  consideration  and 
a  like  sum  as  liquidated  damages  for  the  right  to  withdraw 
at  any  time.  The  Court  cited  Long  v.  Sun  Co.,  132  La.  601 ; 
Martel  v.  Jennings-Heywood,  114  La.  357;  Jennings-Hey- 
wood  v.  Houssiere-Latreille,  119  La.  851;  Berl  v.  Kehoe,  130 
La.  1023  and  Murray  v.  Barnhart,  117  La.  1023. 

There  were  two  opinions  in  Caddo  Oil  &  Mining  Co.  v. 
Producers  Oil  Co.,  134  La.  701,  the  original  decision  being 
changed  on  rehearing.  The  lease  was  for  $1.00  cash  and  re- 
served the  right  to  abandon  the  premises  and  remove  all  prop- 
erty whenever  desired.  It  was  decided: 

"Under  our  law  the  condition  last  above  noted  (right  to 
remove,  etc.,  at  will)  is  clearly  potestatives ;  that  is  to  say, 
it  made  the  execution  of  the  contract  depend  upon  the  will 
of  the  defendant  (C.  C.  2024)  thereby  destroying  the  obliga- 
tion which  defendant  had  assumed  and  which  was  the  'legal 
tie'  that  gave  the  plaintiff  the  right  to  enforce  the  contract. 
C.  C.  2020.  Pothier  Obligations  No.  1-205";  and  it  was 
further  said  that  $1.00  was  no  consideration  for  the  right  to 
withdraw,  consequently  there  was  no  consideration  to  the 
lessor  and  no  contract.  Citing  Murray  v.  Barnhart,  117  La. 
1023;  Goodson  v.  Vivian,  129  La.  95$. 

Hudspeth  v.  Producers  Oil  Co.,  134  La.  1013,  dealt  with 
a  lease  which  provided  that  work  should  begin  in  24  months 
or  the  lessor  should  give  notice  that  the  lease  would  then  ter- 
minate and  the  lessee  could  then  pay  50c  an  acre  for  delay  to 
prolong  the  lease.  Th  Court  said  that  while  such  a  lease  may 
have  been  potestative  in  the  beginning,  the  potestative  condi- 
tion was  cured  by  performance. 


POTESTATIVE  CONDITION  57 

In  McClendon  v.  Busch-Everett  Co.,  138  La.  722,  the 
Court  characterized  as  potestative  a  condition  in  the  lease 
providing  the  right  to  remove  all  machinery,  etc.,  notwith- 
standing a  substantial  cash  consideration  paid  for  the  lease. 

Saunders  v.  Busch-Everett  Co.,  138  La.  1049  (previously 
referred  to)  lays  down  a  doctrine  that  made  a  marked  change 
in  the  trend  of  the  jurisprudence  on  potestative  conditions, 
for  it  was  held  that : 

"A  contract  whereby  the  owner  of  land  grants  to  another 
in  consideration  of  payments  made  and  to  be  made,  of  cer- 
tain agreed  sums  of  money  and  other  considerations,  which 
are  to  arise  in  a  certain  contigency,  his  right,  or  option,  to 
drill  for  oil  or  gas  within  a  year  and  to  extend  the  time  thus 
granted,  quarter  by  quarter,  until  it  reaches  a  limit  of  five 
years,  contains  no  potestative  condition  by  reason  of  its  fail- 
ure to  impose  upon  the  grantee  any  obligation  to  drill,  since 
it  is  not  within  the  contemplation  of  the  contract  that  he 
should  drill  unless  he  so  elects  The  purpose  is  to  confer  the 
right  to  drill,  without  imposing  the  obligation,  and  there  is 
nothing  in  that  purpose  or  in  the  nature  of  the  contract  which 
contravenes  any  law  of  this  State."  (This  lease  also  con- 
tained the  right  to  remove  all  machinery,  etc.,  at  any  time  and 
to  abandon  the  lease  at  will). 

In  the  next  case  (Cochran  v.  Gulf  Refining  Co.  of  La.,  139 
La.  1010),  the  lease  in  question  was  granted  for  a  substantial 
cash  consideration  for  its  execution  and  for  extensions,  and 
the  lessee  reserved  the  right  to  remove  from  the  premises, 
etc.,  upon  paying  $100.00.  The  contention  was  made  that  the 
consideration  for  the  grant  and  extensions  (50c  an  acre  for 
six  months)  was  inadequate,  and  the  right  to  remove  upon 
paying  $100.00  was  a  potestative  condition  which  would  an- 
nul the  contract.  The  Court  held  the  consideration  sufficient 
and  the  contract  not  "unilateral,"  but  said  further : 


58  POTESTATIVE  CONDITION 

"The  potestative  conditions  in  the  contract  were  elimi- 
nated by  the  defendants  beginning  with  the  term  of  the  con- 
tract, the  drilling  of  two  wells  that  produced  gas  in  paying 
quantities",  referring  to  Saunders  v.  Busch-Everett,  Murray 
v.  Barnhart,  Anse  LaButte  v.  Babb,  Hudspeth,  etc.,  134  La. 
113;  McClendon  v.  Busch-Everett. 

Leonard  v.  Busch-Everett,  139  La.  1099,  passed  upon 
issues  identical  with  Saunders  v.  Busch-Everett,  and  re-af- 
firmed the  doctrine  of  that  case,  stating  that  such  a  lease  did 
not  contain  a  potestative  condition.  The  lease  in  this  case  was 
for  a  cash  consideration  of  25  cents  an  acre  and  the  same 
amount  per  year  as  rentals,  payable  quarterly,  and  the  opinion 
does  not  show  whether  the  right  was  reserved  to  abandon  the 
lease. 

Bristo  v.  Christine  Oil  &  Gas  Co.,  139,  La.  312,  dealt  with 
a  lease  granted  for  $1.  and  a  promised  royalty  and  10  cents 
an  acre  for  renewals  from  year  to  year  if  no  development  the 
first  year,  and  the  Court  announced:  "We  rest  our  decision 
in  this  case  not  upon  the  potestative  condition  on  which  the 
contract  was  made,  but  upon  the  proposition  that  a  contract 
purporting  to  give  a  perpetual  option"  is  null  etc. 

In  Wilder  v.  Norman,  147  La.  413,  the  court  characterized 
as  a  "suspensive  potestative  condition"  a  clause  in  a  com- 
munity lease  which  promised  development  but  did  not  bind 
the  lessee  to  develop,  no  other  consideration  having  been 
given  for  the  lease  other  than  the  promise  to  drill,  the  court 
holding  that  such  a  lease  was  unenforcible,  and  citing  most 
of  the  cases  previously  reviewed  and  C.  C.  1034.  And  in 
Rains  v.  Dunson,  145  La.  541,  where  a  lease  was  given 
without  consideration  except  a  provision  that  drilling  a  well 
within  a  radius  of  two  miles  should  hold  the  lease,  it  was 
held  that  such  a  lease  contained  a  casual  and  potestative  con- 


POTESTATIVE  CONDITION  59 

dition,  and  for  such  reason  was  null.     While  in  Hinton  v. 

Smith,  149  La. ,  it  was  said  that  a  contract  contains  a 

potestative  condition  and  lacks  mutuality  where  it  provides 
no  consideration  other  than  a  promise  to  drill  a  well,  with- 
out an  obligation  to  do  so,  and  gives  the  lessee  the  privilege 
of  extending  it  by  payments,  if  he  desires,  and  provides  for 
its  further  extension  if  a  well  is  drilled  within  five  miles  and 
oil  is  founds 

It  appears  from  the  forgoing  cases  that  the  prohibited 
potestative  condition  has  in  some  instances  been  confused 
with  a  lack  of  a  serious  consideration,  when  it  is  quite  evi- 
dent that  a  lease  without  a  serious  consideration  would  nec- 
essarily fall  without  considering  the  question  of  the  potesta- 
tive condition.  The  decisions  also  employ  certain  expressions 
in  regard  to  "unilateral"  contracts,  indicating  that  because  a 
contract  is  unilateral  it  is  null.  It  is  not  every  unilateral  con- 
tract that  is  null  and  there  is  no  provision  in  our  law  that 
says  so.  A  unilateral  contract,  or  any  other  contract,  that 
lacks  mutuality  is  a  nudum  pactum,  and  where  one  person 
seeks  an  advantage  without  consideration  and  without  being 
bound  there  is  a  lack  of  mutuality  which  makes  the  contract 
null.  There  are  unilateral  contracts  of  many  kinds  that  are 
legal : 

For  instance,  Bouvier's  Law  Diet.,  3rd  Ed.,  says: 

"When  the  party  to  whom  an  engagement  is  made  makes 
no  express  agreement  on  his  part*  the  contract  is  called  uni- 
lateral, even  in  cases,  where  the  law  attaches  certain  obliga- 
tions to  his  acceptance.  La.  Civ.  Code,  Art.  1758.  A  loan  of 
money  and  a  loan  for  use  are  of  this  kind.  Pothier  Obe.  part 
1,  c.  1,  s.  1,  Art.  2,  Lee.  Elemen.  Sec.  781." 

"In  the  Common  Law,  according1  to  Professor  Langdell, 
every  binding  promise  not  in  consideration  of  another  promise 


60  POTESTATIVE  CONDITION 

is  a  unilateral  contract.  For  example,  simple  contract  debts, 
bonds,  promissory  notes,  and  policies  of  insurance.  A  bilateral 
contract,  which  consists  of  two  promises  to  give  in  exchange 
for  and  consideration  of  each  other,  becomes  a  unilateral 
contract  when  one  of  the  promises  is  fully  performed;  Lang- 
dell,  Sum.  Cont.  Sec.  183." 

As  a  whole,  it  is  quite  difficult,  if  not  impossible,  to  make 
any  connected  statement  reconciling  and  explaining  the 
various  expressions  of  the  courts  relative  to  the  potestative 
condition,  seriousness  of  consideration  and  lack  of  mutuality. 

Sec.  33.  Potestative  condition,  concluded. 

The  courts  have  announced  several  other  rules  and  prin- 
ciples in  connection  with  the  potestative  condition. 

A  potestative  obligation  retains  that  character  only  so  long 
as  it  has  not  been  fulfilled  in  whole  or  in  part.  Murray  v. 
Barnhart,  117  La.  1023. 

And  where  a  contract  is  potestative  it  is  unnecessary  to 
consider  whether  or  not  it  has  been  breached.  Murray  v. 
Barnhart,  117  Lo.  1023. 

A  potestative  condition  must  be  urged  in  a  direct  action 
to  annual  the  lease.  Houssiere-Latreille  v.  Jennings-Hey- 
wed,  115  La.  107. 

After  performance  it  is  too  late  to  invoke  the  potestative 
condition  and  after  a  party  has  obtained  all  the  benefits  he 
intended  to  receive  from  a  contract  he  cannot  be  heard  to  in- 
voke the  potestative  condition.  Busch-Everett  v.  Vivian  Oil 
Co.,  128  La.  886.  And  while  a  lease  may  have  been  potestative 
in  the  beginning,  such  defect  is  cured  by  the  commencement 
of  work  by  the  lessee  at  the  instance  of  the  lessor.  Hudspeth 
v.  Producers  Oil  Co.,  134  La.  1013.  These  cases,  however, 


POTESTATIVE  CONDITION  61 

are  on  the  theory  that  the  defect  is  waived  by  standing  by 
and  permitting  the  lessee  to  make  expenditures,  and  where 
a  lease  provided  for  drilling  on  lands  of  other  persons  in 
addition  to  those  of  the  lessor,  which  boring  he  could1  not 
prevent,  he  may  invoke  the  potestative  condition.  Rains  v. 
Dunson,  145  La.  541. 

In  order  to  convert  into  a  contract  that  which  was  not  a 
contract  because  of  the  potestative  condition,  the  partial 
execution  which  estops  the  lessor  must  have  been  performed 
to  the  knowledge  and  advantage  of  the  lessor,  at  the  expense 
of  the  lessee,  and  that  he  was  misled  by  the  silence  of  the 
lessor  must  appear,  and  estoppel  will  not  result  where  the 
lessor  had  no  knowledge  of  the  partial  performance  and  no 
opportunity  to  refuse  it.  Hinton  v.  Smith,  149  La. . 

In  order  to  ascertain  whether  or  not  a  contract  contains 
a  potestative  condition  it  must  be  construed  as  a  whole. 
Busch-Everett  Co.,  v.  Vivian  Oil  Co.,  128  La.  886. 

And  a  purchaser  at  Sheriff's  sale  may  invoke  the  original 
nullity  of  a  lease  for  want  of  consideration  and  failure  to 
impose  an  oblibation  on  the  grantee  even  though  he  or  the 
original  lessor  might  at  times  have  been  estopped  by  per- 
mitting crtain  work  under  the  contract.  Gray  v.  Spring,  129 
La.  345.  And  while  a  lessor  is  permitting  development  he 
cannot  complain.  Id. 

Where  a  lessee  has  actually  complied  with  and  discharged 
the  obligation  which  the  potestative  condition  would  nullify, 
and  the  lessor  has  accepted  and  profited  by  the  performance, 
he  cannot  repudiate  the  contract  without  restoring  the  status 
quo,  or  while  retaining  such  advantage.  Caddo  Oil  &  Min- 
ing Co.  v.  Producers  Oil  Co.,  134  La.  701. 


62  RENTALS  AND   PAYMENTS 

While  a  lease  may  be  potestative  in  the  beginning,  such  a 
defect  may  be  cured  by  a  subsequent  voluntary  performance 
by  the  lessee.  Hudspeth  v.  Producers  Oil  Co.,  134  La.  1013. 

After  a  lessee  has  performed  his  obligations  expressed  in 
a  mineral  lease  the  lessor  cannot  annul  the  contract  because 
it  contains  a  potestative  condition.  McClendon  v.  Busch- 
Everett,  138  La.  722.  And  a  potestative  condition  in  a  con- 
tract ceases  to  be  such  when  it  is  fulfilled.  Anse  LaButte 
*  Babb,  122  La.  415. 

Sec.  34.  Rentals  and  Payments. 

An  option  in  a  lease  is  terminated  by  failure  to  make  quart- 
erly payments  promptly  when  due,  and  a  payment  due  in 
advance  is  a  condition  precedent  or  suspensive  condition  and 
delay  in  making  it  cannot  be  excused  even  if  caused  by  vis 
major.  Jennings-Heywood  v.  Houssiere-Latreille,  119  La. 
793.  And  an  alternative  obligation  to  pay  rental  or  develop 
becomes  a  pure  and  simple  obligation  to  develop  if  the  pay- 
ments are  not  made  in  time.  Id.  And  where  a  lease  requires 
a  specified  payment  within  a  specified  time  to  prevent  for- 
feiture, payment  should  be  made  on  or  before  that  date. 
Rowe  v.  Atlas  Oil  Co.,  147  La.  37;  Wilder  v.  Norman,  147 
La.  414.  And  where  a  contract  expressly  provides  for  a  for- 
feiture upon  failure  to  make  a  payment,  and  payment  is  not 
made,  forfeiture  will  be  declared.  Dickinson  v.  Texana  Oil 
&  Refining  Co.,  147  La.  341.  But  where  a  lease  calls  for 
a  payment  if  drilling  operations  are  not  begun  within  a  cer- 
tain time,  without  saying  when  the  payment  is  to  be  made, 
it  is  not  due  until  demanded.  Keene  et  al.  v.  Logan,  147  La. 
80. 

The  burden  of  proof  is  upon  one  alleging  that  a  payment 


63 


has  been  made,  and  while  the  general  rule  is  that  there  is  a 
legal  presumption  that  a  letter  properly  addressed,  stamped 
and  mailed  reached  its  destination  in  due  time,  where  direct 
testimony  shows  that  a  payment  so  mailed  was  not  received 
in  time,  a  forfeiture  will  be  declared.  Pure  Oil  Operating 
Co.  v.  Gulf  Refining  Co.,  143  La.  284. 

In  Anse  LaButte  Oil  &  Mineral  Co.  v.  Babb,  122  La.  415, 
the  court  construed  a  clause  providing  for  payment  ninety 
days  after  success  to  mean  within  ninety  days  and  not  after 
ninety  days. 

A  lessor  who  refuses  to  accept  quartely  payments  under 
a  valid  lease  cannot  complain  that  lessee  is  in  default.  Leon- 
ard r.  Busch-Everett,  139  La.  1099.  And  the  time  during 
which  lessor  prevents  performance  is  excluded  in  determin- 
ing when  payments  are  due.  Keene  v.  Logan,  147  La.  80. 

A  lessor's  acceptance  of  rentails  under  a  void  lease  during 
the  time  both  parties  considered  it  in  force  will  not  prevent 
him  from  demanding  that  it  be  decreed  null  thereafter.  Nor- 
ris  v.  Snyder  &  McCormick,  139  La.  316;  Williams  v.  Me. 
Cormick,  139  La.  319;  Parrot  v.  Hirschler,  139  La.  320.  But 
where  a  lessor  accepts  past  due  payments  and  permits 
drilling  he  cannot  claim  a  cancellation.  Bellinger  v.  Smith, 
142  La.  1009. 

The  deposit  of  rentals  in  a  bank,  where  permitted  by  the 
lease,  is  sufficient.  Murray  v.  Barnhart,  117  La.  1023.  And 
in  this  case,  a  clause  providing  for  payments  during  delay, 
was  construed  to  provide  for  liquidated  damages  and  not 
an  alternative  obligation  by  which  the  lease  could  be  kept 
in  force. 

The  case  of  Knight  v.  Standard  Oil  Co.,  147  La.  272,  dealt 


64  RENTALS  AND  PAYMENTS 

% 

with  certain  provisions  of  a  lease  relative  to  payments  after 
commencement  of  operations,  and  it  was  held  that  quarterly 
payments  were  suspended  during  operations,  and  that  a  pro- 
vision that  the  completion  of  a  well  should  operate  as  liqui- 
dation of  payments  during  the  remainder  of  the  lease  meant 
a  producing  well  and  not  a  dry  hole.  As  to  payments  during 
cessation  of  work,  whether  caused  by  accidents  or  while  mak- 
ing another  location — the  circumstances  and  equities  of  the 
case  will  govern  where  there  is  no  express  stipulation  in  the 
lease. 

The  evidence  of  payment  of  rentals  need  not  be  recorded 
to  have  affect  against  the  third  parties.  Busch-Everett  Co. 
v.  Vivian  Oil  Co.,  128  La.  886;  Baird  v.  Atlas  Oil  Co.,  146 
La.  1099. 

A  lesssee  who  has  parted  with  record  title  to  a  lease  cannot 
make  payments  of  rentals  so  as  to  keep  it  alive  where  the 
owner  of  the  lease  has  failed  to  do  so.  Baird  v.  Atlas  Oil  Co., 
146  La.  1100. 

A  lessor  who  accepts  rentals  from  a  gas  well  on  a  lease  is 
not  estopped  from  claiming  a  cancellation  for  failure  to  de- 
velop diligently.  Prince  v.  Standard  Oil  Co.,  147  La.  283. 

A  lease  which  provided  that  forfeiture  could  be  prevented 
for  five  years  by  payment  of  rentals,  held  to  mean  five  years 
in  addition  to  first  year  which  was  not  included  in  the  com- 
putation. Chadwick  v.  Standard  Oil  Co.,  147  La.  668. 

Where  both  parties  to  a  lease  agree  that  a  recited  con- 
sideration was  not  paid,  it  will  be  treated  as  containing  no 
consideration.  Rains  v.  Dunson,  145  La.  525. 

Although  a  lease  is  silent  on  the  question,  where  a  lessee 
maintains  his  right  to  produce  casinghead  gasoline  thereun- 


TENDER  65 

der,  he  must  pay  the  lessor  a  royalty  therefor.    Wemple  v. 
Producers  il  Co.,  145  La.  1031. 

Where  a  drilling  contractor  receives  checks  in  payment 
of  past  due  installments,  intending  to  accept  them  only  if 
found  that  they  would  be  paid  by  the  bank,  and  upon  wiring 
the  bank  found  that  they  would  not  guarantee  the  payment, 
he  was  not  bound  as  having  received  the  checks,  but  could 
sue  on  his  contract.  Allison  v.  Brown,  148  La.  530. 

It  was  said  in  Hutchinson  et  al.  v.  Atlas  Oil  Co.,  148  La. 
540,  that  where  a  lease  provides  that  payments  shall  stop 
after  discovery  of  oil  and  gas,  this  provision  is  intended 
either  expressly  or  impliedly  to  mean  that  minerals  shall 
be  produced  and  marketed  to  the  best  advantage  of  all  parties. 

Sec.  35.  Tender  of  Payments  and  Performance. 

Failure  to  tender  rent  is  not  cause  for  the  ipso  facto  term- 
ination of  the  lease  unless  there  is  an  express  clause  to  that 
effect.  Houssiere-Latreille  Oil  Co.  v.  Jennings  1  Hey  wood 
Oil  Syndicate,  115  La.  107. 

In  Murray  v.  Barnhart,  117  La.  1023,  it  was  held  that 
payments  made  as  liquidated  damages  for  delay  in  the  per- 
formance of  a  lease  need  not  be  returned  before  suing  for 
a  recission  of  the  contract  for  non-performance,  but  that 
the  consideration  of  the  contract  should  be  returned.  And 
in  Jennings-Heywood  Oil  Syndicate  v.  Houssier-Latrielle 
Oil  Co.,  et  al,  119  La.  793,  it  was  said  that  where  a  lessor 
has  received  payments  for  delay  in  development  and  the 
lessee  has  had  the  benefit  of  the  delay  the  lessee  cannot  de- 
mand the  tender  or  return  of  such  payments. 

And  in  the  same  case  it  was  announced,  as  a  dictum,  that 


66  TENDER 

in  a  lease  providing  for  payments  of  rentals  or  development, 
where  the  rentals  are  not  paid,  if  the  lessee  tender  fulfill- 
ment and  sufficient  reason  for  failure  to  develop,  equity 
might  relieve  him.  But,  ordinarily  in  the  absence  of  begin- 
ning operations  or  payments  of  rentals  that  his  rights  ex- 
pired, and  that  the  only  useful  offer  of  performance  a  lessee 
could  make  after  rents  have  been  paid  would  be  to  develop 
the  land. 

It  devolves  upon  a  person  refusing  to  accept  tenders  of 
rentals  due  under  a  lease  to  maintain  the  legality  of  his  re- 
fusal, and  so  as  to  royalties  due  under  a  lease.  Busch- Everett 
Co.  v.  Vivian  Oil  Company,  128  La.  886. 

But  in  Goodson  v.  Vivian  Oil  Co.  129  La.  955  it  was  said 
that  where  an  agreement  is  a  nuduni  pactwn  the  lessor  has 
the  right  to  so  treat  the  lease  and  to  refuse  the  tender  of 
rentals  which  would  be  a  mere  gratuity. 

Where  a  lease  calls  for  the  deposit  of  rentals  in  a  bank, 
and  such  deposit  is  made  too  late,  the  lessor  need  not  return 
or  offer  to  return  the  deposits,  he  need  only  inform  the  bank 
of  his  unwillingness  to  accept  the  deposit.  Pure  Oil  Co.,  v. 
Gulf  Refining  Co.,  143  La.  284. 

A  lessor  is  under  no  obligation  to  receive  the  tender  of  a 
price  which  the  lessee  was  not  obligated  to  make,  nor  is  he 
bound  by  a  tender  which  affords  him  no  opportunity  to  re- 
fuse. The  case  is  different  where  such  party  is  bound,  be- 
cause then  the  lessor  is  as  much  bound  to  receive  the  price 
as  the  lessee  is  to  pay  it.  Hinton  v.  Smith,  149  La. . 

In  a  suit  for  specific  performance  of  a  contract  to  convey 
mineral  lands,  it  was  sufficient  for  plaintiff  to  offer  to  per- 
form without  depositing  the  price  in  Court.  Anse  LaButte 
Oil  &  Mining  Co.  v  .Babb,  122  La.  415. 


DEFAULT  67 

Sec.   36.   Default  in  payments,  performance,  etc. 

Where  a  lessee  is  not  obligated  to  drill  no  putting  in  de- 
fault is  necessary,  because  it  would  be  demanding  something 
that  the  lessee  was  not  obliged  to  do.  Escoubas  v.  Louisiana 
Pet.  &  Coal  Oil  Company,  22  A.  280.  And  a  lessee  is  not 
in  default  until  he  has  failed  to  comply  with  the  lease.  Hous- 
siere-Latreille  v.  Jennings-Heywood,  115  La.  107. 

Our  law  enforces  no  such  fanciful  notion  as  that,  after  a 
contractor  has  violated  his  contract  by  not  performing  it,  at 
the  time  stipulated,  the  contractee  who  no  longer  desires  to 
have  it  performed,  must  call  upon  him  to  perform  and  that 
if  this  is  not  done  the  time  for  the  performance  runs  indefi- 
nitely. When  the  time  for  performance  has  passed  and 
neither  party  says  anything  about  the  matter,  the  presump- 
tion is  that  neither  party  desires  performance  but  that  both 
desire  that  nothing  further  be  said  about  the  matter.  Jen- 
nings-Heywood v.  Houssiere-Latreille,  119.  La.  183. 

Where  a  contract  is  breached  by  failure  to  perform  in 
time,  it  is  only  when  damages  are  to  be  claimed  that  a  put- 
ting in  default  is  necessary  as  a  prerequisite  to  bringing  suit. 
Murray  v.  Barnhart,  117  La.  1923,  and  this  is  true  only  as 
to  future  damages,  because  damages  already  suffered  may 
be  recovered  without  putting  in  default.  Jennings-Heywood 
v.  Houssiere-Latreille,  119  La.  793. 

A  lessor  who  refuses  to  accept  quarterly  payments  under 
a  valid  lease  and  brings  suit  to  cancel  it,  puts  himself  in 
default  and  cannot  urge  that  the^  lessee  has  not,  pendent e 
lite,  performed  his  part  of  the  contract.  Leonard  v.  Busch- 
Everett  Co.,  139  La.  1099;  Keene  v.  Logan,  147  La.  80. 


68  EXTENSIONS 

And  where  he  prevents  performance,  the  lessee  is  not  in  de- 
fault and  the  term  is  extended.  Gulf  Refining  Co.  v.  Hayne, 
148  La.  340. 

Where  a  payment  is  required  under  a  lease,  but  no  time 
is  specified  for  the  payment,  such  payment  is  due  on  demand 
and  there  is  no  default  until  demand  is  made.  Keane  v. 
Logan,  147  La.  80. 

A  person  first  in  default  cannot  claim  damages  for  the 
alleged  subsequent  default  of  the  other  party  to  the  contract. 
Allison  v.  Brown,  148  La.  530. 

Sec.  37.  Extension. 

One  cannot  grant  an  extension  of  a  lease  after  he  has 
ceased  to  be  the  owner  of  the  property  leased.  And  the  fact 
that  he  turned  over  part  of  the  lease  money  to  the  land  owner 
will  not  constitute  a  ratification  of  his  acts.  Burkholder  et  al 

v.  Consolidated-Progressive  Oil  Corp.  149  La. .    And  in 

this  samfe  case  it  is  stated  that  after  a  lease  ceased  to  exist 
under  its  own  terms,  the  effect  of  granting  an  extension  is 
the  same  as  granting  a  new  contract. 

An  agreement  that  a  lease  will  not  be  declared  forfeited 
during  a  certain  time  so  long  as  as  the  lessee  continues  to 
mine  for  petroleum,  constitutes  merely  a  potestative  condi- 
tion as  to  the  lessee,  who  is  not  obliged  to  drill.  Escoubas 
v.  Louisiana  Petroleum  Co.,  22  A.  280. 

In  Cook  v.  Gulf  Refining  Co.,  127  La.  592,  it  was  said 
that  a  lease  is  not  to  be  extended  by  implication. 

And  it  appears  that  there  would  have  to  be  a  serious  con- 
sideration for  extending  a  lease,  as  for  acquiring  one.  Wil- 
der v.  Norman,  147  La.  413. 


TERMINATION  69 

Sec.   38.   Termination. 

There  are  numerous  ways  in  which  a  lease  may  be  term- 
inated, the  most  common  instances  being: 

(a)  By  effect  of  law.     This  manner  of  termination  is 
treated  in  a  separate  section. 

(b)  By  failure  to  comply  with  the  terms  of  the  lease. 
This  is  also  treated  in  a  separate  section. 

(c)  By  violation  of  the  provisions  of  law.     Under  this 
heading  see  the  sections  relative    to    potestative  condition, 
lesion,  etc. 

(d)  By  abandonment  and  acts  of  the  parties.     See  the 
section  relative  to  abandonment,  etc. 

A  lease  which  gives  one  party  the  right  to  terminate  at 
will  without  a  serious  consideration,  but  which  requires  the 
other  party  to  give  a  six  year  notice,  is  illegal  and  will  be 
annulled.  Long  v.  Sun  Co.,  132  La.  601. 

Sec.  39.  Termination  by  effect  of  law. 

The  sale  of  land  to  pay  debts  of  a  succession  incurred  be- 
fore the  execution  of  the  lease  will  free  the  property  from 
the  lease.  Black  Bayou  Oil  Co.  v.  Pyron  ,129  La.  118.  And 
it  would  appear  that  the  same  is  true  of  a  foreclosure  sale  un- 
der a  mortgage  placed  on  the  land  prior  to  the  lease.  And 
the  motives  for  the  same  are  immaterial  if  the  debts  are  due 
and  the  sale  is  made  to  pay  them.  Where,  however,  the 
lesee  offers  to  pay  the  debt,  a  different  case  is  presented. 

Known  oil  and  mineral  lands  cannot  be  partioned  in  kind, 
but  must  be  partitioned  by  licitation,  and  under  such  a  sale 
the  lease  does  not  follow  the  land.  Gulf  Refining  Co.  v. 


70  TERMINATION 

Hayne,  138  La.  561;  Spence  v.  Lucas,  138  La.  773;  Gulf 
Refiining  Co.  v.  Carroll,  145  La.  199.  In  all  of  these  cases, 
however,  the  lease  was  executed  by  the  owner  of  an  undi- 
vided interest  only,  and  what  the  decision  would  be  where 
the  lease  was  executed  by  all  parties,  or  what  would  be  the 
effect  of  a  partition  in  kind  where  one  owner  had  executed 
a  lease,  remains  to  be  seen. 

The  mere  extra-judicial  partition  by  all  owners  does  not 
affect  the  rights  of  the  lessees.  Cochran  v.  Gulf  Refining 
Co.,  139  La.  1010. 

Sec.   40.   Termination  by  failure  to  comply  with 
the  terms  of  the  contract. 

A  discussion  of  the  forfeiture  and  cancellation  of  leases 
for  failure  to  comply  with  their  terms,  embraces  a  great 
many  subjects  which  are  treated  separately  in  other  sections 
of  this  volume,  such  as  payment  of  rentals,  development,  etc., 
and  a  perusal  of  those  sections  is  necessary,  it  being  the  in- 
tention of  this  section  merely  to  consider  general  principles 
that  find  no  place  in  other  sections  dealing  with  particular 
phases  of  leases. 

Forfeitures  are  not  favored  and  are  strictly  construed. 
Jennings-Heywood  v.  Houssiere-Latreille,  115  La.  107; 
also  119  La.  793,  and  they  are  generally  interpreted  in  favor 
of  the  lessor.  Jennings-Heywood  v.  Houssiere-Latreille, 
119  La.  844;  Escoubas  v.  Louisiana  Petroleum  Co.,  22  A. 
280.  And  a  lease  cannot  be  forfeited  without  a  suit  to  de- 
clare a  forfeiture,  unless  there  is  some  express  provision 
therefor.  Jennings-Heywood  v.  Houssiere-Latreille,  115 
La.  107.  Where  a  contract,  however,  expressly  provides 


ABANDONMENT  71 

for  a  forfeiture  in  default  of  payment,  the  forfeiture  must 
be  declared.  Dickinson  v.  Texana  Oil  &  Ref.  Co.,  147  La. 
341. 

The  burden  of  proving  forfeiture  of  a  lease  is  on  the  one 
claiming  it.  Baird  v.  Atlas  Oil  Co.,  146  La.  1091. 

Where  a  lease  requires  certain  action  to  "prevent"  a  for- 
feiture, such  action  must  be  taken  before  the  event,  and  the 
privilege  of  preventing  a  forfeiture  does  not  carry  with  it 
the  right  of  re-acquiring  the  right  after  it  shall  have  been 
forfeited.  Rowe  v.  Atlas  Oil  Co.,  147  La.  37.  A  forfeiture 
cannot  be  prevented  after  it  has  occurred  and  a  payment 
deposited  after  forfeiture  and  not  accepted  is  too  late.  Wil- 
der v.  Norman  et  al.,  147  La.  413. 

Where  a  litigant  successfully  maintained  his  suit  for  a 
one-fifth  interest  in  oil  lands,  the  Court  ordered  the  Clerk 
of  Court  to  cancel  from  the  public  records  a  lease  on  said 
lands  insofar  as  it  affected  said  interest.  Martel  v.  Jen- 
nings-Heywood,  114  La.  351. 

A  commutative  contract  containing  the  obligation  to 
exploit  the  land  for  oil  and  gas  is  broken  by  the  lessee  who 
fails  to  begin  operations  within  the  term.  Jennings-Hey- 
wood  v.  Houssiere-Latreille,  119  La.  794.  And  where  a 
contract  has  been  breached  its  recission  may,  of  course,  be 
claimed,  and  a  petition  which  alleges  that  the  defendant 
agreed  to  complete  a  well  in  one  year  and  four  years  had 
elapsed  without  the  commencement  of  a  well,  sets  forth  an 
action  for  recission.  Murray  v.  Barnhart,  117  La.  1023. 

Sec.  41.  Abandonment. 

"The  question  of  the  abandonment  of  a  contract  such  as 


72  ABANDONMENT 

an  oil  and  mineral  lease  by  the  lessee  is  ordinarily  a  matter 
of  fact  and  intention,  but  it  may  be  altogether  a  matter  of 
fact  and  law;  and  where,  as  a  matter  of  fact,  work  under 
such  contract  is  discontinued  under  circumstances  which 
fail  to  furnish  a  sufficient  reason  for  the  discontinuance  or 
the  belief  that  there  was  no  definite  intention  to  resume  such 
work,  the  fact  of  the  abandonment  is  controlling."  Gray  et 
al.  v.  Spring  et  al.,  129  La.  355. 

It  was  said  in  Standard  Oil  Company  v.  Barlow,  141  La. 
52,  that  where  a  lessee  drills  an  unprofitable  well  and  aban- 
dons the  lease,  he  may  wait  a  reasonable  time  to  exercise 
the  right  conferred  by  the  lease  "to  remove  all  machinery, 
fixtures  and  improvements  placed  thereon  at  any  time"  and 
may  remove  the  pipe  which  was  left  in  the  ground,  and  that 
eight  months  after  the  abandonment  is  a  reasonable  time 
within  which  to  take  such  action. 

Where  there  is  a  permanent  failure  to  continue  explora- 
tion, it  amounts  to  an  abandonment.  Brown  v.  Producers 
Oil  Co.,  134  La.  672;  Caddo  Oil  &  Mining  Co.  v.  Producers 
Oil  Co.,  134  La.  701. 

In  Knight  Bros.  v.  Standard  Oil  Co.,  147  La.  272,  it  was 
held  that  seventeen  days  was  not  an  unreasonable  time  be- 
tween the  abandonment  of  one  well  and  commencement  of 
operations  on  another,  under  a  lease  calling  for  development. 

The  case  of  Escoubas  v.  Louisiana  Petroleum  &  Coal  Oil 
Co.,  22An.  280,  involved  the  construction  of  a  provision 
in  a  lease  which  required  "constant"  work  "without  cessa- 
tion" and  the  Court  found  as  a  question  of  fact  that  the  pro- 
visions had  not  been  complied  with  and  that  work  had  been 
abandoned. 


DAMAGES  73 

In  Martel  et  al.  v.  Jennings-Heywood  Oil  Syndicate, 
114  La.  351,  the  Court  said  that  a  joint  lease  was  abandoned 
when  it  had  been  given  without  consideration  and  the  lessee 
and  one  of  the  lessors  entered  into  a  new  contract  and  ignored 
the  previous  one  and  did  not  consult  the  other  land  owner 
whose  land  had  been  embraced  in  the  joint  lease. 

Where  a  lease  provides  that  if  minerals  are  found  in  pay- 
ing quantities  and  the  lessee  discontinues  work,  he  shall  be 
held  to  have  abandoned  the  lease  except  ten  acres  around 
the  well,  the  lessee  is  not  entitled  to  claim  the  ten  acres 
where  minerals  have  not  been  found  in  paying  quantities. 
Brown  v.  Producers  Oil  Co.,  134  La.  672. 

Sec.  42.   Damages  for  non-performance  and  for 
usurpation,  etc. 

It  was  intimated  by  the  Court  in  the  early  case  of  Hous- 
siere-Latreille  v.  Jennings-Heywood,  115  La.  107,  that  dam- 
ages might  be  claimed  for  failure  to  drill.  And  in  Murray 
v.  Barnhart,  117  La.  1023,  it  was  said  that  when  a  contract 
to  do  is  breached,  the  obligee  may  claim  its  recission  or  dam- 
ages. And  in  Cook  v.  Gulf  Refining  Co.,  135  La.  609,  it  was 
said  that  an  owner  of  land  could  recover  for  the  usurpa- 
tion of  his  right  to  drill,  but  that  exemplary  damages  could 
not  be  allowed  against  the  usurper  where  he  acted  in  good 
faith  on  advice  of  counsel.  And  a  lessee  has  his  remedy 
against  his  lessor  for  the  lessor's  usurpation  of  his  rights. 
Gulf  Refining  Co.  v.  Hayne,  148  La.  340. 

In  Brown  v.  Producers  Oil  Co.,  134  La.  672,  damages  were 
directly  claimed  for  failure  to  develop,  but  the  Court  dismissed 
the  claim,  saying:  "The  damages  are  not  proved;  they  are 
speculative  and  conjectural;  mere  theories."  But  the  Court 


74  MORTGAGE 

went  on  to  say  that  it  did  not  hold  that  the  loss  was  not  sus- 
ceptible to  proof.  But  in  Caddo  Oil  &  Mining  Co.  134  La. 
701,  it  was  said  that  an  action  for  damages  on  account  of 
insufficient  development  of  a  lease  was  impracticable. 

Where  a  plaintiff  sought  an  injunction  against  certain 
drilling  on  land  claimed  by  it  (Natalie  Oil  Co.  v.  La.  Ry. 
&  Nav.  Co.,  137  La.  706)  and  the  District  Court  exacted  an 
injunction  bond  to  protect  the  defendant,  the  Supreme  Court 
said  that  while  a  bond  was  proper,  it  was  conditioned  to  pro- 
tect defendant  against  damages  and  that  the  difficulty  would 
be  in  defendant  proving  damages,  because  it  could  not  pos- 
sibly show  that  any  oil  had  been  drained  from  its  land  by 
adjoining  wells  of  plaintiff,  and  it  might  be  that  there  was 
no  oil  under  defendant's  land  at  all,  as  it  could  only  prove 
that  there  was  oil  by  boring  for  it  and  bringing  it  to  the  sur- 
face; but  that  if  defendant  were  permitted  to  bond  the  in- 
junction and  bore  for  oil,  then  plaintiff's  damages  would  be 
easily  ascertained  by  gauging  the  oil  from  the  wells. 

Where  damages  are  claimed  for  drilling  a  gas  well  on 
land  of  plaintiff,  it  is  difficult,  if  not  impossible,  to  estimate 
the  loss  of  gas  under  the  ground.  Cook  v.  Gulf  Refining 
Co,  135  La.  609. 

Sec.  43  Mortgage. 

Act  232  of  1910  authorizes  the  execution  of  mortgages 
on  leases  and  contracts,  etc.,  together  with  buildings,  equip- 
ment, etc,  and  the  issuance  of  bonds  secured  by  mortgage 
for  a  period  not  exceeding  the  term  of  the  lease,  etc.  See 
Spence  v.  Lucas,  136  La.  763;  see  also  Parks  v.  Hughes, 
145  La.  221.  See  Appendix. 


WARRANTY  75 

Sec.  44.  Warranty. 

In  Jennings-Heywood  Oil  Syndicate  v.  Home  Oil  &  De- 
velopment Company,  Ltd.,  113  La.  383,  defendants  were 
sued  on  notes  given  in  payment  of  a  lease,  and  resisted  the 
suit  on  the  ground  that  plaintiff,  the  seller  of  the  lease,  was 
bound  as  warrantor  to  maintain  them  in  peaceful  possession 
of  the  lease  as  in  the  sale  of  real  estate,  and  that  certain 
suits  had  been  filed  which  had  the  effect  of  keeping  them 
out  of  the  possession  of,  and  enjoyment  of,  the  property,  and 
the  Court  applied  the  same  rules  as  in  the  case  of  warranty 
in  the  sale  of  real  estate  and  held  that  the  lessee  or  purchaser 
having  been  informed  of  the  danger  of  eviction,  would  have 
to  pay  the  price  of  the  lease  or  suffer  judgment  to  be  entered 
against  him,  but  would  be  entitled  to  demand  a  bond  from 
the  seller  (and  lessor)  to  protect  him  in  case  of  eviction  and 
before  the  judgment  could  be  executed  or  payment  required. 

The  Court  refused  to  order  the  return  of  a  portion  of  the 
purchase  price  in  Rives  v.  Gulf  Refining  Co.,  133  La.  178, 
where  claimed  because  only  79  acres  was  delivered  under  a 
lease  calling  for  one  hundred  acres. 

The  Court  stated  that  only  the  right  to  extract  oil  was  ac- 
quired and  it  was  impossible  to  say  what  it  was  worth  or 
what  portion  of  the  price  should  be  returned. 

It  was  said,  arguendo,  in  Wilson  et  al.  v.  Person,  143  La. 
282,  that  one  who  sells  or  grants  mineral  rights  incurs  the 
personal  obligation  of  defending  his  vendee's  title.  And  a 
person  who  grants  a  lease  on  the  whole,  while  merely  own- 
ing an  undivided  interest  is  bound  to  protest  his  lessee 
against  the  acts  of  his  co-owners.  Gulf  Refining  Co.  v. 
Hayne,  148  La.  340. 


76  MINERAL  RIGHTS 

A  person  selling  a  lease  on  his  land  where  there  is  a  prior 
lease  must  reimburse  all  money  paid  for  the  second  lease. 
Standard  Oil  Co.  v.  Webb,  149  La.  -  -. 

Sec.  45.  Mineral  Rights.     Sale,  exception,  reser- 
vation, prescription,  etc. 

For  a  number  of  years,  before  the  Courts  had  passed  upon 
the  question,  there  was  much  doubt  in  Louisiana  as  to  the 
legality  of  certain  contracts  which  attempted  to  segregate  the 
ownership  of  oil  and  gas,  before  reduced  to  possession,  from 
the  ownership  of  the  land  itself. 

The  question  was  raised  indirectly  in  some  of  the  earlier 
cases,  as,  for  instance,  in  Cook  v.  Gulf  Refining  Co.,  of  Louisi- 
ana, 127  La.  592,  where  it  was  urged  that  under  the  terms 
of  a  particular  lease  the  oil  itself  had  been  sold  to  the  lessee, 
and  the  court  answered  that  if  such  was  the  case,  then  it  oper- 
ated only  as  the  sale  of  a  hope,  citing  C.  C.  2456.  In  Gray  v. 
Spring,  129  La.  345,  it  appears  from  the  opinion  of  the  Court 
that  a  one-third  interest  in  "mineral  rights"  had  been  sold, 
while  in  the  later  case  of  Nabors  et  al  v.  Producers  Oil  Co., 
140  La.  985,  the  ownership  of  "mineral  rights"  distinct  from 
the  land  is  referred  to  and  noticed. 

In  the  case  of  Strother  v.  Maugham,  138  La.  437,  the  Court 
expressed  itself  more  directly  on  the  question.  The  plaintiff 
had  sold  the  defendant  all  of  the  minerals  in  and  under  his 
land,  and  later  attacked  the  sale.  The  Court  said :  "The  doc- 
trine that  the  owner  of  the  land  has  no  property  right  in  the 
oil  or  gas  beneath  the  surface  until  he  has  reduced  it  to  pos- 
session in  no  manner  denies  to  such  owner  the  exclusive  right 
to  the  use  of  the  surface  for  the  purpose  of  such  reduction,  or 
for  any  other  purpose  not  prohibited  by  law,  but,  to  the  con- 


EXCEPTIONS— RESERVATIONS  77 

trary,  concedes  that  right,  as  inherent  to  the  title  to  the  land 
and  subject  only  to  the  control  of  the  State,  in  the  exercise  of 
its  police  power,  and  the  right  may  be  sold,  as  may  any  other 
right  and  may  carry  with  it  the  right  to  the  oil  and  gas  that 
may  be  found  and  reduced  to  possession." 

This  case  was  followed  by  Hanby  v.  Texas  Co.,  140  La. 
189,  where  the  Court  said:  "Conceding  that  the  sale  of  an 
interest  in  the  oil  or  gas  which  may  be  discovered  beneath  the 
surface  of  a  particular  tract  of  land  conveys  no  title  to  any 
specific  oil  or  gas,  it  nevertheless  carries  with  it  the  right  to 
make  use  of  the  surface  of  the  land  for  the  reduction  to  pos- 
session of  the  oil  or  gas  that  may  be  found,  and  in  fact  the 
right  last  mentioned  is  alone  conveyed  in  such  case  since  it 
is  the  only  right  with  respect  to  those  fugitive  products  that 
the  owner  of  the  land  himself  can  be  said  to  possess.  That 
right,  however,  he  does  possess  *  *  *  *  and  he  may  dispose  of 
it." 

In  DeMoss  v.  Sample  et  al,  143  La.  243,  the  question  of 
the  legality  of  a  resrevation  of  minerals  was  at  issue,  and  the 
Court  held  that  an  owner  might  sell  the  surface  rights  on  his 
land  and  except  the  minerals  below  the  surface,  including  oil, 
gas  and  sulphur. 

The  Court  called  attention  to  Act  31  of  1910  (now  amended 
by  Act  149  of  1920  (where  the  Legislature  had  inferentially 
recognized  the  legality  of  such  reservations  by  "reserving  to 
the  State  of  Louisiana  all  minerals  and  mineral  rights  on  and 
under"  certain  lands  conveyed  to  the  City  of  Shreveport.  And 
in  the  same  case  the  Court  stated  that  while  the  descriptive 
word  "exception"  is  more  proper  in  describing  this  character 
of  transaction,  that  the  word  "reservation"  would  be  held  to 
mean  the  same  thing.  And  it  was  further  decided  that  no 


78  MINERAL   RIGHTS— PRESCRIPTION 

consideration  was  due  the  vendor  who  reserved  the  minerals, 
since  the  part  reserved  was  not  transferred  and  there  was  no 
need  of  a  consideration. 

Calhoun  v.  Ardis,  144  La.  311,  followed  the  De  Moss  case 
and  it  was  there  held  that  a  notarial  act  conveying  title  to 
land,  retaining  mineral  rights  thereunder,  operated  as  a  reser- 
vation of  the  minerals  and  excluded  them  from  the  sale  and 
there  was  no  consideration  for  same  due  the  purchaser,  as 
they  never  belonged  to  the  purchased;  and  that  an  owner  of 
land  might  dismember  his  title  and  vest  the  ownership  of  the 
surface  in  his  purchaser  and  retain  and  reserve  the  minerals 
thereunder  for  himself.  (Citing  DeMoss  v.  Sample). 

After  the  decision  of  these  cases,  the  question  of  the  pre- 
scription of  mineral  rights,  which  had  caused  much  confusion 
for  a  number  of  years,  occasioned  a  marked  change  in  the 
trend  of  jurisprudence  on  the  question  of  the  segregation  or 
dismemberment  of  title.  For,  if  the  expressions  con- 
tained in  DeMoss  v.  Sample  and  Calhoun  v.  Ardis  were  taken 
literally,  then  the  question  of  prescription  as  applied  to  min- 
eral rights  would  be  treated  in  the  same  way  as  the  prescrip- 
tions relating  to  corporeal,  real  property;  while,  on  the  other 
hand,  in  the  case  of  Wadkins  v.  Atlanta  and  Shreveport  Oil 
&  Gas  Co.,  decided  in  1913,  and  not  reported,  due  to  the  fact 
that  the  case  was  compromised  during  the  pendency  of  appli- 
cation for  rehearing,  the  Court  held  that  mineral  rights  pre- 
scribed by  non-user  for  ten  years,  thus  treating  such  rights 
as  mere  servitudes.  And  this  case,  while  not  reported,  had 
been  cited  as  authority  by  the  Supreme  Court  on  several  occa- 
sions. (See  the  opinion  in  appendix). 

So,  in  the  case  of  Frost-Johnson  Lbr.  Co.  v.  Sailings,  149 
La ,  the  question  was  directly  presented,  and  after  the 


MINERAL   RIGHTS— PRESCRIPTION  79 

Court  had  considered  the  matter  several  times,  reaching  dif- 
ferent conclusions,  on  the  second  rehearing  the  decision  in  the 
Wadkins  case  was  followed  and  it  was  again  held  that  the 
right  to  extract  oil  and  gas  from  land  is  a  servitude  and  pre- 
scribes by  non-user  for  ten  years.  The  Court  reviewed  some 
of  the  earlier  decisions  and  stated  that  in  view  of  the  previous 
expressions,  oil  and  gas  could  not  be  considered  as  susceptible 
to  ownership  as  specific  things  apart  from  the  soil  and  that  a 
grant  or  reservation  carries  only  the  right  to  extract  such 
minerals  from  the  soil.  The  Court  also  sought  to  distinguish 
the  cases  of  DeMoss  v.  Sample  and  Calhoun  v.  Ardis,  holding 
that  they  were  no  authority  on  the  point  as  to  whether  a  sale 
of  mineral  rights  conveys  a  corporeal  thing  or  an  incorporeal 
right. 

While  the  Sailings  case  was  pending  on  rehearing,  the  Su- 
preme Court  decided  the  case  of  Frost- Johnson  Lbr.  Co.  v. 

Nabors  Oil  &  Gas  Co.,  149  La ,  holding  that  prescription 

had  not  run  in  that  particular  instance,  as  it  had  been  inter- 
rupted because  during  the  ten  years  following  the  execution 
of  the  deed  conveying  the  right,  the  vendor  recognized  such 
right  by  executing  a  deed  conveying  the  land  subject  to  such 
right  and  acknowledged  such  right  by  reserving  the  minerals. 

The  decisions  on  this  question  having  been  confusing,  the 
classification  of  mineral  rights  as  servitudes  will  materially 
change  the  theory  upon  which  valuable  interests  have  been 
acquired  and  held,  still  it  is  hoped  that  the  question  is  finally 
at  rest  and  will  not  be  another  disturbing  element  in  our  oil 
and  gas  jurisprudence. 

Passing  to  other  questions  relating  to  mineral  rights,  the 
early  case  of  Houssiere-Latreille  Oil  Co.  v.  Jennings-Hey- 
wood  Oil  Syndicate,  115  La.  107,  intimated  that,  for  the  pur- 


80  OPTIONS 

pose  at  least  of  the  possessory  action,  the  actual  possession  of 
mineral  rights  would  have  to  be  shown.  While  in  the  case  of 
McClung  et  al  v.  Atlas  Oil  Co.,  148  La.  674,  a  transfer  to  an 
attorney  of  an  undivided  interest  in  mineral  rights  in  consid- 
eration of  services  to  be  rendered,  was  construed  as  giving 
him  a  present,  fixed  interest  so  that  he  had  a  standing  in  Court 
to  test  his  title  against  others  claiming  the  same  thing,  irre- 
spective of  the  action  of  his  client  and  vendor. 

In  Wilson  v.  Pierson,  143  La.  287,  certain  rights  arising 
from  the  reservation  and  acquisition  of  mineral  rights  were 
passed  upon,  and  it  was  held  that  where  one  acquired  lands 
from  a  vendor  who  had  no  title,  and  such  vendor  reserved 
the  mineral  rights,  and  the  purchaser  subsequently  acquired 
the  land  from  the  lawful  owner,  and  sued  his  first  vendor  for 
claiming  the  mineral  rights,  such  purchaser  was  not  estopped 
by  the  recital  of  the  first  deed  that  his  first  vendor  retained 
the  mineral  rights,  because  he  had  not  conveyed  the  mineral 
rights  to  his  first  vendor  and  had  not  received  any  considera- 
tion for  the  supposed  reservation,  and  was  under  no  obliga- 
tion to  defend  his  first  vendor's  claim  to  the  mineral  rights; 
and  it  was  also  said  that  the  purchase  from  the  rightful  owner 
would  not  inure  to  the  benefit  of  the  first  and  wrongful  claim- 
ant of  the  property  by  reason  of  his  reservation  of  the  min- 
eral righs,  although  if  the  mineral  rights  had  been  sold  to  him 
instead  of  having  been  reserved  by  him  such  acquisition  might 
inure  to  his  benefit. 

Sec.  46.  Option. 

Where  a  contract  (without  a  serious  consideration)  gives 
a  lessee  the  right  to  exploit  land  or  not,  at  his  option,  there 
is  in  reality  no  contract,  but  if  an  option  is  granted  it  expires 
by  failure  to  exercise  it  timely,  because  if  an  option  is  not 


OPTIONS  81 

exercised  within  the  time  limit  the  right  will  be  lost  and  even 
vis  major  is  no  excuse  for  delay.  Jennings-Heywood  v. 
Houssiere-Latreille,  119  La.  793. 

In  Goodson  v.  Vivian  Oil  Co.,  129  La.  955,  a  lease  was 
termed  a  "grant  and  option,"  and  gave  the  lessee  the  exclu- 
sive right  to  begin  drilling  within  six  months,  with  the  pro- 
vision that  if  the  lessee  "shall  avail  itself  of  the  right  herein 
granted  to  drill  on  said  lands  and  shall  find  oil  or  gas  in  pay- 
ing quantities,  it  shall  have  the  right,  at  any  time,  to  termi- 
nate said  lease  and  remove  its  machinery  and  property  there- 
from." Defendants  drilled  an  unsuccessful  well  which  they 
contended  was  a  gas  well,  and  deposited  rentals  therefor,  as 
provided  in  the  lease,  which  plaintiff  refused,  contending 
that  the  well  had  not  been  completed  as  required  by  the  con- 
tract. Defendants  contended  that  the  lease  was  a  "continu- 
ing option,"  but  the  Court  held  that  the  lease  clearly  differ- 
entiated the  lease  from  the  option  and  the  lease  was  can- 
celled. 

A  lease  was  construed  in  Long  v.  Sun  Co.,  132  La.  601, 
which  contained  the  provision  that  for  the  payment  of  $1.00 
the  option  was  given  to  cancel  at  any  time  after  the  expira- 
tion of  twelve  months  upon  giving  notice,  and  that  the  one 
dollar  should  be  held  a  valuable  consideration  for  all  of  the 
options,  rights  and  privileges  granted.  On  account  of  the 
insignificant  consideration,  the  Court  considered  that  the 
defendant  was  given  the  option  to  cancel  the  contract  at  will, 
and  stated  that  contracts  optional  with  one  of  the  parties  are 
optional  as  to  either,  if  there  is  no  consideration,  and  that 
either  party  may  exercise  the  right  to  terminate  such  a  con- 
tract at  will. 

A  perpetual  option  to  renew  a  lease  from    time    to    time 


82  LICENSE 

without  definitely  stating  the  term  constitutes  a  nudum  pac- 
tum.  Bristo  v.  Christine  Oil  &  Gas  Co.,  139  La.  312;  Norris 
v.  Snyder,  139  La.  316;  Parrot  v.  Kirchler,  139  La.  320; 
Calhoun  v.  Christine,  139  La.  316;  Denham  v.  McCormick, 
139  La.  317;  Nervis  v.  McCormick,  139  La.  318. 

An  option  for  a  valuable  consideration  to  drill  or  not  drill 
within  a  certain  time,  with  the  privilege  of  renewal  from 
quarter  to  quarter  for  a  stated  time  is  valid  and  binding. 
Leonard  v.  Busch-Everett,  138  La.  1049.  And  in  Saunders 
v.  Busch-Everett,  138  La.  1049,  a  similar  contract  was  held 
to  be  valid,  the  Court  stating  that  it  was  not  contemplated 
that  any  drilling  obligation  be  imposed. 

In  Snyder  v.  McCormick,  146  La.  811,  a  contract  requir- 
ing the  payment  of  $250.00  cash  and  $1000.00  out  of  the 
proceeds  of  leases  sold,  and  other  provisions  requiring  plain- 
tiff to  act  as  agent  of  defendant,  was  construed  as  a  contract 
with  the  payment1  of  earnest,  which  defendant  could  repu- 
diate upon  paying  twice  the  amount. 

Sec.  47.  License. 

A  lease  which  gives  the  lessee  the  right  to  explore  for 
ninety-nine  years  without  obligating  him  to  do  so  is  a  mere 
license  or  permit  and  binds  neither  party  and  it  terminable 
at  the  will  of  either  party.  Martel  et  al.  v.  Jennings-Hey- 
wood  Oil  Syndicate,  114  La.  351;  see  Rains  v.  Dunson,  145 
La.  539. 

Oil  and  gas  are  vested  in  the  owners  of  land  as  a  real  cor- 
poreal entity  and  property— a  solid  substantial  estate  and 
not  a  mere  license  to  take  them.  DeMoss  v.  Sample  et  al., 
143  La.  243.  But  see  Frost- Johnson  Lbr.  Co.  v.  Sailings,  149 
La.. 


LITIGIOUS  RIGHTS  83 

Sec.  48.  Litigious  Rights. 

Civil  Code  2652  provides  that  he  against  whom  a  litigious 
right  has  been  acquired  may  get  himself  released  by  paying 
the  transferee  the  real  price  of  the  transfer,  together  with 
interest  from  date.  And  Civil  Code  1447  forbids  the  pur- 
chase of  litigious  rights  by  attorneys  when  they  fall  under 
the  jurisdiction  of  the  tribunal  in  which  they  exercise  their 
functions,  under  the  penalty  of  nullity.  But  a  right  is  not 
litigious  unless  there  exists  a  suit  and  contestation  over 
same  (C.  C.  1653)  and  the  nullity  denounced  by  C.  C.  2447 
is  only  relative  and  in  the  interest  of  those  whose  rights  have 
been  violated,  and  an  attorney  may  purchase  an  interest  in 
oil  fields  where  the  litigation  involving  the  same  has  been 
determined  prior  to  the  purchase,  as  a  title  ceases  to  be  liti- 
gious when  final  judgment  is  rendered  in  the  cause.  Saint 
v.  Martel,  122  La.  93.  C.  C.  2652  and  2653  are,  however, 
for  the  benefit  of  either  party  to  the  litigation.  Langston 
v.  Shaw  et  al.,  147  La.  644. 

In  McClung  v.  Atlas  Oil  Co.,  148  La.  674,  it  was  held  that 
neither  C.  C.  2653  nor  C.  C.  2447  apply  where  a  suit  has  not 
been  brought,  no  matter  how  apparent  it  is  that  a  suit  is 
necessary,  and  a  present  conveyance  to  an  attorney  at  law 
for  services  rendered  and  to  be  rendered  in  respect  to  min- 
eral lands  is  not  invalid. 

A  right,  to  be  litigious,  must  be  involved  in  litigation. 
Where  a  second  lease  is  made  by  an  owner,  while  suit  affect- 
ing a  previous  lease  is  pending,  the  sale  of  the  second  lease 
does  not  constitute  the  sale  of  a  litigious  right.  But  where 
a  litigant  has  the  right  to  acquire  the  right  sold,  upon  paying 
the  price,  etc.,  he  must  do  so  promptly  and  cannot  await  the 


84  DEVELOPMENT 

enhancement  in  value  of  the  property.     Mohawk  Oil  Co.,  v. 
Layne,  270  Fed.  851. 

Sec.  49.   Development — In  General. 

The  business  of  developing  a  tract  of  land  for  oil  and  gas 
is  one  requiring  special  knowledge  and  experience,  exercise 
of  good  judgment  and  the  handling  of  large  capital.  Dickin- 
son v.  Texana  Oil  &  Refining  Co.,  144  La.  489. 

In  seeking  and  saving  petroleum  produced  by  the  opera- 
tions of  nature,  the  necessity  for  the  use  of  wells,  storage 
tanks,  etc.,  is  inherent  in  the  business  and  the  expenses  of 
storing  oil  from  a  gushing  well  is )  an  operating  expense. 
Jennings-Heywood  v.  Houssiere-Latreille,  127  La.  971. 

A  lessee  under  a  mineral  lease  has  only  such  rights  on  the 
surface  necessary  for  development.  Houssiere-Latreille  v. 
Jennings-Heywood,  115  La.  107. 

In  Anse  La  Butte  Oil  &  Mineral  Co.  v.  Babb,  122  La.  415, 
a  contract  was  construed  as  giving  the  right  to  purchase  the 
land  and  requiring  no  development  at  all. 

It  was  stated  in  Gray  v.  Spring,  129  La.  345,  that  to  per- 
mit a  large  expenditure  of  money  under  a  void  lease  would 
constitute  an  estoppel  against  claiming  such  nullity. 

But  an  adjoining  land  owner  who  has  been  informed  by 
engineers  that  the  location  of  a  well  is  on  the  land  of  his 
neighbor  is  not  estopped  thereafter  from  inquiring  as  to  the 
true  location  of  the  property  line  and  claiming  the  produc- 
tion from  the  well.  Russell  v.  Producers  Oil  Co.,  138  La. 
184.  In  the  same  case,  it  is  said  that  it  devolves  upon  those 
who  go  upon  land  to  drill  a  well,  or  otherwise,  to  inform 
themselves  in  advance  that  they  have  that  right. 


DEVELOPMENT   AS   CONSIDERATION  85 

It  was  said  in  Murray  v.  Barnhart,  117  La.  1024,  that  in 
a  proper  case  the  Court  might  allow  additional  time  to  per- 
form a  contract,  but  in  a  mineral  contract  time  is  always 
more  or  less  of  the  essence,  and  when  a  lessee  has  allowed  a 
long  time  to  elapse  without  excuse  for  failure  to  perform  no 
additional  time  will  be  allowed. 

A  lease  providing  that  if  the  lessee  brings  in  an  oil  well 
he  shall  have  the  right  to  exploit  the  land  of  the  lessor  does 
not  give  him  the  right  to  exploit  the  land  by  bringing  in  a 
gas  well.  Cook  v.  Gulf  Refining  Co.,  127  La.  592. 

\Yhere  the  holders  of  leases  on  the  same  land  enter  into 
an  agreement  to  have  the  land  developd  during  the  pendency 
of  a  suit  about  the  leases,  such  development  inures  to  the 
benefit  of  the  real  lessee,  and  the  owner  of  one  of  the  leases 
could  not  be  charged  with  failure  to  develop.  Mohawk  Oil 
Company  v.  Layne,  270  Fed.  851. 


The  question  of  development  as  the  real  consideration  for 
the  granting  of  mineral  leases  was  a  question  much  discussed 
during  the  first  years  of  the  industry  in  Louisiana,  and  it 
was  intimated  in  some  of  the  earlier  cases  that  if  the  lessee 
was  not  obliged  to  develop,  and  no  development  was  had, 
that  the  lease  would  not  hold.  Martel  v.  Jennings-Heywood, 
114  La.  351;  Murray  v.  Barnhart,  117  La.  1023;  Goodson 
v.  Vivian  Oil  Co.,  129  La.  955;  Long  v.  Sun  Co.,  132  La. 
601;  Hudspeth  v.  Producers  Oil  Co.,  134  La.  1013,  etc. 

In  some  of  the  cases,  however,  the  Court  construed  the 
clause  "for  the  sole  and  only  purpose  of  mining,"  etc.,  to  in- 
dicate that  the  sole  object  was  development  (Murray  v. 


86  UNEXPECTED  SUBSTANCES 

Barnhart,  117  La.  1023)  and  the  Court  later  held  that  where 
development  is  indicated  to  be  the  sole  purpose  of  a  lease, 
delay  will  not  be  permitted,  and  where  delay  is  permitted 
there  must  be  a  proper  consideration  for  such  delay.  Long 
v.  Sun  Co.,  132  La.  601. 

In  Green  v.  Standard  Oil  Co.,  146  La.  935,  it  was  said 
that  the,  main  consideration  for  a  lease  is  development,  but 
this  must,  no  doubt,  be  taken  as  meaning  that  where  a  lease 
provides  for  diligent  development  after  oil  is  found,  such 
development  is  the  main  consideration  for  continuing  the 
lease.  And  it  was  stated  in  Hutchinson  v.  Atlas  Oil  Co.,  148 
La.  540,  that  time  and  prompt  development  become  the  es- 
sence of  the  contract  once  oil  or  gas  has  been  found.  (Cit- 
ing Guffey  Petroleum  Co.  v.  Oliver,  Tex.  Civ.  Ap,  79  S.  W., 
Archer  on  Oil  &  Gas,  etc.) 

Sec.  51.  Producing  other  substances  than  oil  and 
gas. 

An  interesting  question  was  raised  in  22  A.  280,  Escoubas 
v.  Louisiana  Petroleum  &  Coal  Oil  Co.,  where  the  lessee 
had  the  right  to  bore  for  oil  or  "other  similar  products."  No 
oil  was  found,  but  a  bed  of  crystallized  sulphur  was  located 
and  lessee  claimed  his  portion  of  same  and  the  right  to  pro- 
duce it,  under  the  lease.  The  district  Court  decided  in  his 
favor  but  on  appeal  to  the  Supreme  Court  the  case  went  off 
the  other  points  without  any  decision  of  this  particular 
question. 

In  the  case  of  Anse  LaButte  Oil  &  Mineral  Co.  v.  Babb, 
122  La.  415,  the  contract  gave  the  right  to  explore  for  "com- 
mercial substances  of  whatever  nature"  and  upon  the  find- 
ing of  oil  and  salt  in  small  quantities,  it  was  claimed  that  the 


DILIGENCE  87 

operations  were  successful  and  commercial  substances  had 
been  found.  But  the  Supreme  Court  said  the  Plaintiffs 
rights  were  based  upon  the  operations  being  a  "Success", 
and  the  finding  of  oil  and  salt  in  less  than  paying  quantities 
did  not  constitute  the  finding  of  "commercial  substances"  as 
contemplated  under  the  contract,  inasmuch  as  it  was  known 
by  the  parties  that  such  substances  in  small  quantities  would 
be  found  and  that  salt  was  not  a  commercial  substance  in 
the  contemplation  of  the  parties. 

The  question  of  payment  for  casing-head  gasoline,  where 
the  lease  does  not  provide  for  same,  was  discussed  fully  in 
Wemple  v.  Producers  Oil  Company,  145  La.  1031,  and  it 
was  held  that  where  the  lessee  maintains  his  right  to  pro- 
duce casing  head  gasoline  from  such  a1  lease,  he  must  pay 
to  the  lessor  the  royalty  of  l/%  provided  for  oil  production 
unless  he  can  show  that  such  production  involves  greater  ex- 
pense and  less  profit  than  the  production  of  heavier  oil. 

The  case  of  Lock,  et  al.  v.  Russel  et  al,  75  W.  Va.  602,  845 
S.  E.  948  was  cited  in  support  of  this  decision. 

Sec.  52.   Diligence,  sufficiency,  etc. 

It  was  contended  for  and  stated  in  several  of  the  earlier 
cases  that  every  lease  contains  an  implied  obligation  to  put 
down  as  many  wells  as  necessary  for  the  development  of  the 
land  where  oil  has  been  discovered  in  paying  quantities,  regard- 
less of  the  stipulations  of  the  lease,  and  when  development 
ceases  and  will  be  concelled.  Brown  v.  Producers  Oil  Co., 
134  La.  672;  Caddo  Oil  &  Mining  Co.  v.  Producers  Oil  Co., 
134  La.  701 ;  Berl  v.  Kehoe,  130  La.  1920. 

In  the  case  of  Caddo  Oil  &  Mining  Co.  cited  above,  how- 
ever, the  Court,  on  re-hearing,  stated  that  while  the  question 


88  DILIGENCE 

of  development  is  primarily  to  be  determined  by  the  lessee,  the 
ultimate  determination  is  with  the  Court,  and  what  ordinarily 
knowledge  and  care  would  dictate  is  what  the  law  would  re- 
quire in  the  way  of  development. 

And  in  the  case  of  McClendon  v.  Busch-Everett  Co.,  138 
La.  722,  it  was  stated  that  a  lessor  is  not  entitled  to  a  cancel- 
lation of  a  lease  for  a  violation  of  an  implied  obligation  to 
drill  unless  there  is  an  express  provision  for  such  forfeiture. 
That  case  goes  on  to  state  that  in  Caddo  Oil  &  Mining  Co. 
v.  Producers  Oil  Co.,  Goodson  v.  Vivian  Oil  Co.  and  Berl 
v.  Kehoe,  that  the  question  of  development  was  all  important 
due  to  a  lack  of  consideration  to  support  the  leases  involved, 
aside  from  the  obligation  to  drill. 

And  in  Cochran  v.  Gulf  Refining  Co.,  139  La.  1010,  the 
McClendon  v.  Busch-Everett  case  was  followed,  holding  that 
where  a  proper  consideration  is  paid  in  cash  there  is  no  ob- 
ligation to  do  more  than  the  contract  expressly  provides. 
And  where  a  lessee  has  paid  a  proper  cash  consideration 
and  complied  with  the  express  obligation  to  drill  a  well  within 
a  year,  which  well  is  not  productive,  the  lessor  cannot  ask  a 
cancellation  on  the  ground  that  the  lessee  is  not  bound  by 
an  implied  obligation  to  drill  additional  wells,  nor  on  the 
ground  that  the  lessee  merely  acquired  a  hope  and  the  lessor 
is  released  by  permitting  the  lessee  to  attempt  to  realize  the 
hope.  Nabors  v.  Producers  Oil  Co.,  140  La.  986. 

The  case  of  Prince  v.  Standard  Oil  Co.,  147  La.  283,  dis- 
cusses the  duty  of  the  lessee  very  fully.  It  was  contended  by 
the  lessee  that  the  following  provision  embraced  merely  an 
implied  obligation  to  drill,  which  could  not  be  enforced — "The 
party  of  the  second  part(  lessee)  bining  itself,  after  the  dis- 
covery of  oil  or  gas  in  paying  quantities,  to  prosecute  dili- 


DILIGENCE  89 

gently  the  work  of  production  of  oil  or  gas  and  deliver  the 
one-eighth  of  the  oil  as  above  provided,  and  the  payment  of 
$200  per  annum  for  gas  (if  a  gas  well)  as  above  provided." 
The  Court  said: 

"The  diligence  required  in  production  is  that  which  could 
be  reasonably  expected  of  an  operator  of  ordinary  prudence. 

"Where  a  lease  does  not  expressly  make  either  lessee 
or  lessor  the  arbiter  of  the  extent  of  diligence  required  of 
lessee  to  prosecute  the  work  of  production,  the  question  of 
whether  the  required  diligence  is  exercised  depends  on  what 
would  be  reasonably  expected  of  operators  of  ordinary  pru- 
dence, having  regard  to  the  interests  of  both  lessee  and  lessor. 

"Where  lease  required  lessee  'to  prosecute  diligently  the 
work  of  production  of  oil  or  gas',  lessee  could  not  deal  with 
the  premises  in  its  own  perculiar  interests  exclusively,  but 
was  required  to  promote  the  mutual  advantage  and  profit  of 
the  lessor,  and,  though  not  bound  to  work  unprofitably  for 
lessor's  benefit,  it  was  required,  in  such  event,  when  refus- 
ing lessors'  requests  to  prosecute  the  work,  to  abandon  the 
contract, 

''Where  lessee  required  diligent  prosecution  of  work  of 
production,  and  where  lessee,  after  drilling  a  gas  well,  re- 
fused for  four  years  to  drill  other  wells,  lessors  were  entitled 
to  cancellation,  though  land  had  no  value  as  oil  property, 
and  there  was  no  market  for  gas  in  the  territory,  and  though 
lessee  has  paid  the  annual  rent  for  the  gas  wel  las  required 
by  the  lease,  the  provision  as  to  diligent  prosecution  being 
express  and  not  merely  implied." 

It  was  also  held  in  the  same  case  that  the  acceptance  of 
rentals  from  a  gas  well  did  not  estop  the  lessor  from  claim- 
ing a  forfeiture  for  failure  to  develop  diligently. 

In  Hart  v.  Standard  Oil  Co.,  146  La.  885,  the  Court  found 
that  the  drilling  of  some  twenty  wells  on  320  acres,  at  a  cost 
of  $650,000.00,  and  which  had  not  paid  out  after  several 


90  DILIGENCE 

years'  operation,  but  from  which  the  lessor:  had  received 
$90,000.00,  was  a  sufficient  development  under  an  agree- 
ment calling  for  development  in  accordance  with  the  custom 
of  the  field. 

The  drilling  of  twenty  wells  on  700  acres,  where  the  ex- 
penditures have  far  exceeded  the  recipts  and  75  per  cent,  of 
the  wells  produced  nothing,  and  nobody  has  obtained  any- 
thing from  the  lease  but  the  lessors,  seems  to  constitute,  as 
a  whole,  reasonable  and  adequate  development.  Nabors  Oil 
&  Gas  Co.  v.  McCormick,  145  La.  94. 

But  in  Green  v.  Standard  Oil  Co.,  146  La.  936,  a  lease 
was  annulled  where  lessee  drilled  only  one  small  well  which 
hardly  produced  enough  oil  to  pay  for  its  operation,  and 
lessee  refused  to  drill  any  more  wells.  And  in  Hutchinson 
et  al.  v.  Atlas  Oil  Co.,  148  La.  540,  where  a  lessee  drilled 
a  salt  water  well  and  then  T.  gas  well  (there  being  a  marker 
for  gas)  and  then  abandoned  work,  the  lease  was  declared 
forgeited,  the  Court  saying:  "The  main  object  of  this  and  all 
other  mineral  leases  is  to  have  exploitation  of  the  premises 
for  their  minerals,  and,  if  found,  to  have  them  produced  for 
the  common  benefit  of  the  lessor  and  lessee".  *  *  *  *  "In 
our  opinion  it  would  require  a  very  clear  and  unmistakable 
contract  to  support  the  proposition  that  a  lessee  could,  after 
discovering  any  mineral  in  paying  quantities  decline  to  ex- 
plore further,  refuse  to  pay  any  further  consideration,  and 
fail  to  market  that  which  had  been  found,  indefinitely  and 
at  its  pleasure." 

Where  a  lease  confers  on  the  lessee  the  right  to  drill  sue 
cessively  for  oil  or  gas  after  thoroughly  testing  the  lease  for 
oil  and  gas  the  lessee  proceeds  to  begin  operations  to  drill 
another  gas  well,  although  there  is  no  market  for  gas  and  no 


DILIGENCE  91 

advantage  in  drilling  the  well,  the  Court  will  not  interfere 
but  will  allow  the  lessee  to  drill  according  to  the  terms  of 
the  contract.  Elston  v.  Atlas  Oil  Co.,  147  La.  1048.  In  the 
same  case  the  Court  stated  arguendo,  that  there  is  a  limit  to 
the  amount  of  drilling  that  can  be  done  and  that  would  be 
required  to  be  done  under  a  lease. 

As  stated  in  Murray  v.  Barnhart,  117-  La.  1023,  where 
development  is  the  sole  object  of  the  lease,  the  erection  of  a 
derrick  after  suit  for  cancellation  is  brought,  is  insignificant. 

And  the  placing  of  one  man  on  a  lease  to  drill  shallow  wells 
to  a  depth  of  25  or  30  feet,  which  wells  produce  about  one 
barrel  of  oil  a  day,  is  merely  making  a  pretense  of  prosecut 
ing  with  diligence  the  search  for  oil  in  paying  quantities. 
Gray  v.  Spring,  129  La.  345.  And  where  it  is  a  matter  of 
public  notoriety,  and  known  to  the  contracting  parties  in 
the  beginning  that  small  quantities  of  oil  and  salt  will  be 
found,  and  they  are  so  found,  such  a  well  is  not  a  "success" 
as  contemplated  by  the  contract.  Anse  LaButte  Oil  &  Mineral 
Co.  v.  Babb,  122  La.  415.  But,  as  said  in  the  same  case, 
where  the  lessor  is  on  the  lease  every  day,  if  he  does  not 
consider  a  well  a  success,  he  should  say  so  and  not  remain 
silent  so  as  to  injure  the  lessee. 

The  Court  stated  in  Rains  v.  Dunson,  145  La.  542,  that 
where  a  lease  did  not  obligate  the  lessee  to  development,  and 
after  the  lesssee  made  formal  demand  for  the  cancellation 
of  the  lease,  the  placing  of  some  materials  on  the  ground  for 
the  erection  of  a  derrick  (or  even  the  erection  of  a  derrick) 
a  few  days  before  suit  was  filed,  was  not  a  reasonable  prose- 
cution of  the  work. 

Where  a  lease  .provides  that  a  well  shall  be  commenced,  the 
term  "well"  means  the  hole  to  be  drilled  in  the  hope  of  finding 


92  COMMENCEMENT— AMOUNT 

oil  and  retains  that  status  until  a  depth  is  reached  which  de- 
termines whether  it  shall  be  a  producer,  or  a  dry  hole,  and 
the  whole  process  constitutes  a  prosecution  of  the  work  of 
drilling  a  well.  Knight  Bros.  v.  Standard  Oil  Co.,  147  La.  272. 

A  land  owner  who  states  that  he  is  satisfied  with  drilling 
on  an  adjoining  lease  and  would  ask  for  no  lease  money, 
is  not  estopped  where  it  is  not  shown  that  his  statements  were 
accepted  or  acted  on.  Rowe  v.  Atlas  Oil  Co.,  147  La.  37. 

Sec.  53.  What     constitutes     commencement    of 
operations. 

The  wording  of  each  lease  must,  of  course,  be  looked  to 
as  indicating  what  would  constitute  a  commencement  of 
operations  thereunder,  and,  from  the  nature  of  the  question, 
each  case  must  necessarily  rest  upon  its  own  particular 
facts  and  few  set  rules  can  be  laid  -down  to  govern  such  a 
situation. 

In  Murray  v.  Barnhart,  117  La.  1023,  where  the  lease 
was  construed  as  calling  for  early  development,  the  court 
stated  that  the  act  of  erecting  a  derrick  after  suit  was 
brought  was  "insignificant";  while  in  Hudspeth  et  al.  v. 
Producers  Oil  Co.,  134  La.  1013,  it  was  held  that  the  work 
of  erecting  derricks  during  the  term  of  the  lease  satisfied 
the  conditions  thereof. 

Where  a  lease  provides  for  a  "well"  to  be  commenced, 
it  means  a  hole  in  the  ground.  Knight  Bros.  v.  Standard  Oil 
Co.,  147  La.  272. 

Sec.  54.  Amount  of  production. 

In  the  case  of  Anse  LaButte  Oil  &  Mineral  Co.  v.  Babb, 


CESSATION— RESUMPflON  93 

122  La.  415,  the  court  considered  whether  or  not  a  well  was 
a  "success"  under  the  provisions  of  a  contract  and  reached 
the  conclusion  that  a  well  which  gushed  one  time,  oil  mixed 
with  gas,  sand  and  clay  in  an  amount  sufficient  to  merely 
cover  a  pit  8  by  12  feet  with  an  inch  and  a  half  of  oil,  that 
such  amount  was  in  less  than  "paying  quantities",  especially 
in  view  of  the  fact  that  the  finding  of  oil  in  insignificant 
quantities  was  fully  expected. 

As  stated  in  Cook  v.  Gulf  Refining  Co.,  135  La.  609, 
where  a  lease  provides  that  it  shall  remain  in  force  so  long 
as  oil  is  found  in  "paying  quantities",  it  is,,  of  course,  at 
an  end  when  the  time  for  exploration  has  expired  and  no 
oil  or  gas  has  been  found.  This  principle  was  also  announced 
in  case  of  same  title,  127  La.  592. 

Sec.  55.  Time  between  cessation  and  resumption 
of  operations. 

Where  lessee  has  kept  a  lease  in  force  by  making  the  re- 
quired payments  and  then  begins  drilling  a  well,  which  is 
abandoned  as  a  dry  hole,  and  in  17  days  undertakes  to  make 
a  location  for  another  well,  but  is  prevented  by  the  lessor, 
who  brings  suit  for  cancellation  of  the  lease  on  the  ground 
(among  others),  that  a  rental  which  fell  due  while  opera- 
tions were  going  on  ,was  not  paid,  held  that  no  payment  was 
due  while  drilling  was  in  progress,  and  where  the  contract 
makes  no  special  provision  for  the  time  allowed  without  pay- 
ment of  rental  or  forfeiture  of  contract  between  the  abandon- 
ment of  a  dry  hole  and  the  resumption  of  the  prosecution  of 
the  work  of  drilling  a  well,  the  question  will  be  determined 
according  to  the  circumstances  of  the  case,  and  17  days  was 
not  an  unreasonable  delay.  Knight  Bros.  v.  Standard  Oil 
Company,  147  La.  272. 


94  OFFSETS— PUMPS 

When  a  lease  provides  for  operations  to  be  prosecuted 
with  due  diligence,  due  diligence  is  shown  where  the  lessee 
has  suffered  an  unavoidable  accident  by  breaking  a  linver 
in  the  well  and  endeavors  faithfully  to  remove  the  same  and 
waits  two  months  to  select  another  location  to  drill  another 
well  after  finding  it  impossible  to  remove  the  broken  liner. 
Nobors  v.  Producers  Oil  Co.,  140  La.  985. 

Sec.  56.  Offsets. 

Where  an  agreement  provided  for  the  drilling  of  such  off- 
set wells  as  was  customary  in  the  field,  the  Court  held  in 
Hart  v.  Standard  Oil  Company,  146  La.  885,  that  the  cus- 
tom did  not  require  offsetting  wells  unless  within  200  feet 
from  the  lines,  nor  the  offsetting  of  a  well  of  such  small  pro- 
duction that,  according  to  expert  testimony,  it  could  not  pos- 
sibly have  drained  lessor's  land. 

Sec.  57.   Pumps,  etc. 

An  owner  cannot  be  debarred  from  the  legitimate  use  of 
his  property  simply  because  it  causes  damage  to  his  neigh- 
bor; both  wells  and  pumps  are  artificial  means  of  causing 
the  flow  of  oil,  and  the  owner  of  land  cannot  complain  of 
the  use  of  a  pump  by  an  adjoining  land  owner. 

But  where  the  owner  of  land  has  sunk  an  oil  well  which  is  a 
non-producer,  which  lets  air  into  the  subterranean  regions 
and  interferes  with  an  adjoining  land  owner  drawing  oil 
with  a  pump,  such  interference  will  be  enjoined.  Higgins 
Oil  &  Fuel  Co.  v.  Guaranty  Oil  Co.,  145  La.  233. 

See  the  Conservation  Laws  relative  to  powers  of  Depart- 
ment of  Conservation  in  respect  to  the  use  of  pumps. 


DRILLING  CONTRACTS  95 

Sec.  58.  Drilling  contracts. 

Act  232  of  1916  provides  that  all  drilling  contracts  for 
$1000  or  more  shall  be  in  writing  and  recorded  in  the  public 
records  of  the  parish  where  work  is  to  be  done.  That  such 
recordation  operates  as  a  lien  on  the  well,  equipment,  etc., 
and  10  acres  of  ground  surrounding  same.  That  the  owner 
of  the  well  shall  require  of  the  driller  a  bond  for  not  less 
than  one-half  amount  of  contract  for  the  faithful  perform- 
ance of  contract  and  payment  of  all  labor  materials,  etc. 
That  all  having  claims  against  contractor  shall  file  sworn 
statements  of  same  within  30  days  from  acceptance  by  own- 
er. That  at  the  end  of  30  days  the  bond  shall  be  cancelled 
if  no  claims  filed,  otherwise  all  in  interest  are  brought  into 
Court  in  concurcus  proceeding  and  the  rights  of  parties  and 
solvency  of  bond  passed  upon.  The  owner  shall  not  make 
last  payment  on  contract  and  shall  hold  out  a  tleast  one-fifth 
of  contract  price  until  the  30  days  for  filing  claims  has 
elapsed.  The  owner  who  fails  to  take  bond  or  record  same 
shall  be  responsible  as  a  surety  for  labor,  materials,  etc.,  and 
claims  shall  operate  as  first  lien  and  privilege  on  well,  land 
or  lease.  See  Appendix. 

This  act  is  not  generally  observed. 

In  the  case  of  Hammond  Oil  &  Development  Company  v. 
Feitel  115  La.  132,  plaintiff  contracted  with  defendant  to 
drill  a  well  to  a  stipulated  depth  at  a  stipulated  price.  The 
drill  stem  became  stuck  and  defendant  abandoned  the  work. 
Plaintiffs  did  what  they  could  to  minimize  the  damage  by 
pulling  the  pipe,  etc.,  and  sued  the  defendant  for  the  differ- 
ence, and  the  Court  held,  that  where  a  contractor  through 
his  own  negligence  brings  the  work  which  he  has  under- 
taken to  perform  into  such  a  condition  that  he  is  unable  to 


96  DRILLING  CONTRACTS 

complete  it  and  thereupon  abandons  his  contract,  he  becomes 
liable  for  the  loss  resulting  to  the  other  contracting  party, 
including  the  amount  reasonably  expended  in  minimizing 
such  loss. 

In  the  case  of  Latex  Oil  &  Pipe  Line  Company  v.  Atlanta 
Oil  &  Gas  Co.,  124  La.  385,  certain  work  was  done  under  a 
contract  which  was  then  supplanted  by  a  new  contract,  and 
it  was  contended  by  plaintiffs  that  defendant  could  claim 
nothing  under  the  first  contract  because  it  had  not  performed 
the  second  contract,  but  the  Court  held  that  when  the  first 
contract  to  sink  a  well  to  a  certain  depth  had  been  performed, 
and  the  driller  had  earned  the  stipulated  compensation,  his 
failure  to  complete  the  supplemental  contract  to  drill  the  well 
deeper  will  not  effect  the  rights  acquired  under  the  first  con- 
tract. 

In  American  Well  &  Prospecting  Company  v.  Lilly  Oil 
Company  et  al.,  128  La.  660,  plaintiff  sued  for  amount  due 
them  for  drilling  a  well.  The  contract  provided  that  the 
well  should  be  completed  "to  the  satisfaction"  of  defendant, 
and  in  the  suit  the  defendants  answered  that  the  well  had 
not  been  so  completed.  The  evidence  showed  the  officials  of 
the  defendant  company  had  visited  the  well  and  it  was  then 
turned  over  to  the  company;  that  plaintiff  then  furnished  a 
pumping  plant  for  the  well  and  that  defendants  operated  it 
for  more  than  a  year  before  any  complaint  was  made,  and 
the  Court  held  that  where  a  well  is  to  be  completed  to  the 
satisfaction  of  an  oil  company,  that  taking  possession  of  it 
and  operating  for  more  than  a  year  without  objection  or 
complaint  is  conclusive  evidence  of  such  satisfaction. 

In  the  case  of  McCann  &  Harper  Drilling  Company  v. 
Busch  Everett  Co.,  131  La.  888,  plaintiff  sued  for  the  price 


WASTE  97 

of  a  well,  it  appearing  that  the  well  should  be  drilled  to  a 
depth  of  2,300  feet  and  should  be  a  6-inch  well,  but  the  de- 
fendants complained  than  on  account  of  a  leaky  casing,  the 
well  had  been  completed  as  a  4-inch  well,  which  they  had 
not  contracted  for,  and  the  Court  found  that  it  is  the  custom 
of  the  oil  field  that  where  nothing  is  said  in  the  contract,  it 
is  contemplated  that  where  it  is  impossible  to  complete  the 
well  at  a  certain  diameter  through  no  fault  of  the  driller, 
that  the  contract  really  contemplates  that  the  well  shall  be 
finished  at  a  smaller  diameter.  The  Court  further  found 
that  two  wells  had  already  been  accepted  as  4-inch  wells  and 
the  Court  said  that  fact  carried  "considerable  significance." 

Where  a  drilling  contract  requires  the  use  of  a  certain 
size  casing  "if  necessary",  and  it  is  not  necessary,  it  cannot 
be  contended  that  the  driller  has  not  performed  the  contract. 
Allison  v.  Brown,  148  La.  530. 

Sec.  59.  Waste  Oil  etc. — Damages  from  same. 

Act  13  of  1906  makes  it  a  misdemeanor  knowingly  and 
willfully  to  contaminate  any  stream,  body  of  water,  etc., 
from  which  the  public  supply  of  any  city  is  taken,  or  to  do 
any  act  tending  to  corrupt,  injure  or  contaminate  said  water, 
or  to  permit  to  escape  or  drain  into  said  water  any  substance 
or  fluid  tending  to  contaminate  or  injure  said  water  or  to 
injure  the  quality  thereof.  See  Appendix. 

And  Act  183  of  1910  makes  it  a  misdemeanor  knowingly 
and  willfully  to  empty  or  drain  into  or  permit  to  be  drained 
from  pumps,  reservoirs,  wells  or  oil  fields  into  any  natural 
stream  or  drain  from  which  water  is  taken  for  irrigation 
purposes  any  oil,  salt  water  or  noxious  or  poisonous  gasses 
or  substances  which  would  render  said  water  unfit  for  irri- 


98  LIENS 

gation  or  destroy  the  fish  in  said  stream.  The  act  does  not 
apply  from  September  1  to  March  1,  but  during  the  closed 
season  watch  must  be  kept  to  prevent  leaks,  etc.,  and  all 
reservoirs  must  be  posted  showing  to  whom  they  belong. 
See  Appendix. 

The  case  of  McFarland  v.  Jennings-Heywood  Oil  Syndi- 
cate, 118  La.  357,  was  a  suit  for  damages  occasioned  to  land 
near  the  oil  fields  from  escaping  oil  and  salt  water  and  from 
a  fire  occasioned  by  escaping  oil,  all  of  which,  it  was  alleged, 
had  killed  trees  and  destroyed  crops  and  pasturage  and  pol- 
luted the  fresh  waters  in  a  natural  stream.  The  Court  held 
that  the  doctrine  of  damnurn  absque  injuria  would  not  apply 
and  that  an  adjoining  estate  had  no  legal  right  to  discharge 
into  a  natural  drain  waste  oil  or  salt  water,  and  is  respon- 
sible for  damages  resulting  to  the  estate  below.  In  this  case 
it  was  further  shown  that  a  certain  company  was  claiming 
all  of  the  waste  oil  from  the  field  and  had  built  dams  for  the 
purpose  of  saving  it,  and  the  Court  held  that  this  company 
would  be  responsible  for  all  of  the  damages  occasioned  by 
the  escape  of  oil  and  sailt  water  over  and  through  the  dam. 

See  the  case  of  Cedar  Grove  Oil  &  Gas  Co.  v.  Southwes- 
tern Gas  &  Electric  Co.,  141  La.  452,  relative  to  a  claim  for 
allege  damage  to  gas  strate  by  permitting  gas  to  escape,  but 
not  decided  upon  that  issue. 

Sec.  60.  Liens — etc. 

In  Conroy  v.  Pine  Belt  Oil  Company,  143  La.  879,  a  per- 
son furnishing  materials  or  labor  for  improving  a  well  on 
a  lease  was  held  to  be  entitled  to  a  lien  and  privilege  on  the 
lease  and  wells  located  thereon  and  the  derricks,  machinerv, 


EQUIPMENT— CONVERSION  99 

piping,,  tubing,  tanks,  storehouses  and  attachments  thereto 
belonging  or  composing  same. 

Sec.  61.  Machinery,  equipment,  etc. 

The  lessee  under  an  oil  lease  who  drills  a  well  which 
proves  unprofitable  may  abandon  the  land,  and  within  a  rea- 
sonable time  may  exercise  the  right  conferred  by  the  lease 
"to  remove  all  machinery,  fixtures  and  improvements  placed 
thereon  at  any  time"  by  removing  the  pipe  which  has  been 
left  in  the  ground,  and  eights  months  after  the  abandonment 
is  a  reasonable  time  within  which  to  take  such  action.  Stan- 
dard Oil  Company  v.  Barlow,  141  La.  52. 

In  La.  Texas  Oil  &  Pipe  Line  Company  v.  Atlanta  Oil  & 
Gas  Company,  124  La.  385,  a  claim  was  made  for  damages 
for  the  misuse  and  abuse  of  drilling  machinery  by  a  pledgee 
but  the  claim  was  denied  on  a  question  of  fact. 

The  chattel  mortgage  acts  of  the  state,  (See  Act  198  of 
1918),  give  authority  to  mortgage  all  kinds  of  machinery, 
oil  well  casing,  line  pipes,  drilling  rigs,  tanks,  tank  cars  and 
all  other  movable  property. 

When  boilers  and  machinery  are  accessories  to  a  well,  the 
possession  of  one  covers  the  possession  of  the  other.  Jen- 
nings-Heywood  v|  Hey  wood  Oil  Company,  117  La.  542. 

Sec.  62.  Conversion  of  oil. 

In  Jennings-Heywood  Oil  Syndicate  v.  Houssiere-La- 
treille  Oil  Company,  127  La.  971,  it  was  claimed  that  a  pipe 
line  company  had  illegally  converted  certain  oil  to  its  own 
use ;  the  Court  found  that  it  had  acted  in  good  faith  believing 
the  oil  belonged  to  it  and  ordered  it  to  pay  the  price  at  the 


100  CONVERSION— SALE 

time  of  conversion  with  legal  interest  thereon  from  date  of 
conversion,  and  stated  further  that  while  in  some  cases  the 
measure  of  damages  for  conversion  is  the  highest  market 
value,  that  this  rule  would  not  be  applied  in  this  particular 
case. 

The  question  in  Russell  v.  Producers  Oil  Company,  146 
La.  481,  was  the  amount  due  a  lessor  whose  royalty  had 
been  paid  to  the  wrong  party.  The  Court  found  that  as 
there  was  no  intention  of  wrong  doing  on  the  part  of  the  les- 
see, that  the  lessor  was  entitled  to  the  price  received  for  the 
oil  by  the  wrongful  recipient,  plus  interest  from  date  of  de- 
mand and  not  the  market  value  at  the  time  of  judgment. 

A  lessor  who  wrongfully  drilled  a  well  on  the  lease  of 
lessee  must  turn  over  to  the  lessee  the  proceeds  of  the  well 
less  cost  of  production.  Gulf  Ref.  Company  v.  Hayne  148 
La.  340. 

Sec.  63.  Sale  of  oil. 

In  the  case  of  Crusel  v.  Tierce,  118  La.  292,  the  defendant 
entered  into  a  written  contract  whereby  he  agreed  to  deliver 
to  plaintiff  250,000  barrels  of  oil  at  18c  per  barrel  from  cer- 
tain production  and  from  certain  oil  stored,  and  from  cer- 
tain wells  to  be  drilled.  After  delivering  only  a  small  part 
of  the  oil,  defendant  notified  plaintiff  that  the  contract  was 
at  an  end,  because  the  supply  had  failed. 

The  Court  held  that  the  contract  contemplated  only  oil 
produced  and  stored,  and  that  defendant  would  not  be  com- 
pelled to  operate  at  a  loss  in  order  to  fill  the  contract,  and 
would  be  permitted  to  deduct  the  amount  of  oil  paid  as  roy- 
alty to  the  lessor,  although  this  was  not  specifically  men- 
tioned in  the  contract,  because  plaintiff  should  have  under- 


SALE  OF  OIL  101 

stood  that  the  royalty  would  have  to  be  deducted.  But  the 
Court  refused  to  permit  a  deduction  of  a  royalty  in  oil  paid 
for  pumping  the  wells,  because  a  royalty  of  this  kind  was  not 
contemplated  and  should  have  been  paid  for  in  cash  and  not 
in  oil.  The  defendant  also  contended  that  there  was  not  as 
much  oil  on  hand  as  the  contract  had  contemplated,  but  the 
Court  held  that  inasmuch  as  defendant  had  represented  a 
certain  amount  on  hand,  he  was  bound  by  this  representa- 
tion. 

The  Court  then  allowed  the  plaintiff  the  difference  be- 
tween the  contract  price  of  18c  and  the  market  price  of  26c 
for  the  oil,  which  was  not  delivered.  The  question  was  also 
raised  that  plaintiff  had  borrowed  a  certain  quantity  of  oil, 
which  he  had  to  repay  when  he  could  have  bought  outright 
at  a  less  figure.  But  the  Court  said  that  in  borrowing  the 
oil  "he  acted  for  the  best  interest  of  all  parties  concerned, 
and  did  what  is  frequently  done  in  the  oil  field,"  and  should 
not  have  to  suffer  for  what  was  defendant's  fault.  The 
Court  allowed  a  reduction  of  Ic  per  barrel,  as  plaintiff  had 
agreed  to  pay  that  amount  of  brokerage  on  each  barrel,  and 
would  have  had  to  pay  it  if  the  oil  had  been  delivered. 

In  the  case  of  Addeline  Sugar  Factory,  Ltd.  v.  Evange- 
line  Oil  Company,  121  La.  961,  a  contract  was  entered  into 
for  the  delivery  of  20,000  barrels  of  fuel  oil  at  36c  per  bar- 
rel, contract  providing  "20M  with  privilege  of  15M  more 
bbls."  The  contract  fixed  the  time  and  place  of  deliveries 
and  the  manner  of  payment,  and  provided  that  in  the  event 
of  failure  to  deliver,  damages  should  be  computed  at  the  dif- 
ference in  the  cost  between  oil  and  other  fuels,  etc. 

The  plaintiff  notified  the  defendant  that  it  would  take  the 
entire  25,000  barrels,  and  when  the  defendant  failed  to  fur- 


102  SALE  OF  OIL 

nish  that  amount,  sued  for  the  difference  between  the  con- 
tract price  and  the  market  price,  which  was  about  60c  per 
barrel.  Defendant  contended  that  although  the  contract  did 
not  so  provide  that  the  oil  was  purchased  for  the  purpose  of 
making  a  sugar  crop,  and  not  for  speculating  purposes,  and 
the  amount  was  merely  extended  for  the  privilege  of  obtain- 
ing a  greater  amount  if  it  should  be  necessary  to  make  the 
crop,  and  that  it  was  not  t under  obligation  to  deliver  any  oil 
other  than  the  amount  specified  for  the  crop. 

The  Court  considered  oral  evidence  showing  the  surround- 
ing circumstances  at  the  time  of  making  the  contract  and 
upheld  defendant's  contention.  The  Court  further  'an- 
nounced the  doctrine  that  while  damages  will  be  allowed  for 
actual  loss,  that  it  will  not  necessarily  be  extended  to  the 
loss  or  gain  of  which  a  party  has  been  deprived. 

In  Silverman  v.  Caddo  Gas  &  Oil  Company,  127  La.  928, 
defendant  agreed  to  furnish  plaintiff  with  100,000  barrels 
of  oil,  but  stopped  delivery.  He  sued  for  breach  of  contract, 
defendant  claiming  that  he  himself  was  in  default  by  failing 
to  pay  for  oil  delivered,  and  the  Court  held  that  he  could 
not  recover  damages  under  the  circumstances. 

In  the  case  of  Crusel  v.  Hermitage  Planting  &  Mfg.  Co., 
114  La.  922,  defendants  resisted  a  suit  for  damages  for 
breach  of  contract  to  purchase  oil,  on  the  ground  that  plain- 
tiff had  failed  to  deliver  oil  by  a  specified  date.  The  Court 
decided  against  this  contention,  holding  that  where  a  con- 
tract specifies  delivery  about  a  certain  time  that  the  buyer 
cannot  fix  arbitrarily  a  certain  day  and  demand  delivery,  etc. 

Where  a  contract  for  the  sale  of  oil  provides  that  oil  will 
be  delivered  from  certain  wells  at  a  certain  price,  but  that 
should  the  wells  cease  to  "gush"  the  agreement  and  price 


STORAGE,  PIPING,  TRANSPORTATION  103 

should  be  changed  to  meet  the  new  conditions,  and  the  wells 
cease  to  gush  but  no  agreement  can  be  reached,  the  Court 
will  not  undertake  to  make  an  agreement  for  the  parties. 
United  Fruit  Co.  v.  L.  Pet.  Co.,  115  La.  181. 

In  Minors'  Estate  v.  Crusel,  124  La.  59U,  the  plaintiffs 
were  given  judgment  for  the  difference  between  contract 
price  and  market  price  they  were  compelled  to  pay  after 
the  seller  failed  to  deliver  oil. 

Agreements  relative  to  commissions  for  the  sale  of  oil  must 
be  definite  and  certain.  Miller  v.  Crusel,  135  La.  649. 

Sec.   64.   Storage,  piping,  transporation,  etc. 

The  question  of  the  reasonableness  and  legality  of  certain 
practices  in  the  storing  and  piping  of  oil  was  discussed  in 
Jennings-Heywood  v.  Houssiere-Latreille,  127  La.  971, 
where  the  Court  stated  that  the  necessity  for  piping  and 
storing  oil  is  inherent  in  the  oil  business.  Certain  oil,  in  the 
hands  of  the  sheriff,  has  been  stored,  and  after  a  fire  in  a 
distant  field,  the  owners  of  the  storage  facilities  tried  to  pro 
rate  the  loss  on  owners  of  stored  oil  in  all  fields,  on  the  theory 
that  the  same  was  "common  stock."  It  was  stated  by  the 
Court  that, while  oil  belonging  to  several  owners,  mixed  to- 
gether in  tanks,  becomes  common  stock  so  as  to  oblige  the 
owners  to  pro  rate  a  loss  from  a  fortuitous  cause,  oil  stored 
in  different  fields  would  have  to  be  made  common  stock  by 
an  unmistakable  agreement,  which  was  not  the  case  in  this 
instance.  The  Court  found  further  that  the  charge  for  pip- 
age varies  as  conditions  vary,  and  that  a  charge  of  lOc  per 
barrel  for  piping  and  storing  was  reasonable  in  that  in- 
stance, as  was  a  charge  of  Ic  a  barrel  a  month  for  storage, 
which  was  the  usual  and  reasonable  charge  in  the  field.  And 


104  STORAGE,   PIPING,   TRANSPORTATION 

the  Court  further  found  that  a  charge  of  five  per  cent  and 
one  per  cent  a  month  for  loss  by  seepage,  leakage  and  evap- 
oration from  eastern  tanks  was  reasonable  "and,  in  most 
cases,  insufficient  to  protect  the  bailee."  And  a  charge  of 
33  1-3  cents  per  day  per  thousand  barrels  was  found  to  be  a 
customary  charge. 

In  Crusel  v.  Brooks,  133  La.  447,  the  Court  found  that  a 
deduction  of  from  2  per  cent  to  5  per  cent  for  loss  by  pipe 
line  is  reasonable  and  customary  and  does  not  always  cover 
actual  loss.  And  a  reasonable  charge  may  be  made  for 
leakage  and  evaporation  from  earthern  storage,  and  where 
there  is  a  large  amount  of  oil  on  hand  and  it  is  necessary  to 
store  it,  storage  in  earthern  tanks  is  justifiable.  And  where 
all  oil  from  various  owners  is  stored  together,  each  owner 
remains  the  owner  of  a  certain  number  of  barrels,  but  not 
any  particular  oil,  which  is  all  common,  and  losses  are  de- 
ducted proportionately. 

The  question  of  the  liability  of  a  lessee  for  commingling  oil 
and  delivering  to  the  wrong  royalty  owner  was  discussed  in 
Russell  v.  Producers  Oil  Co.,  146  La.  481.  The  rightful 
owner  of  the  oil  contended  that  by  commingling  his  oil  with 
oil  from  other  wells  he  was  entitled  to  the  whole  production, 
but  the  Court  held  that  as  there  was  a  practically  certain 
way  of  determining  the  amount  of  oil  due  him,  the  lessee 
would  merely  be  obliged  to  pay  him  the  value  of  his  share 
of  the  oil,  with  interest. 

Where  a  pipe  line  company  running  oil  requires  a  bond  of 
$100,000  from  the  claimant  of  oil,  to  protest  it  from  adverse 
claims  to  same,  it  cannot,  after  paying  the  claimant  $90,000, 
refuse  to  pay  the  value  of  oil  up  to  the  balance  of  the  amount 
of  the  bond  and  thus  defeat  the  purpose  for  which  the  bond 


PIPE  LINES  105 

was  given  and  taken    Atlas  Oil  Co.  v.  Standard  Oil  Co.,  142 
La.  601. 

Act  36  of  1906  declared  all  pipe  lines  that  convey  oil  and 
gas  from  one  point  in  the  State  to  another  point  /;/  the  State, 
for  a  consideration,  to  be  common  carriers  and  under  the  con- 
trol of  the  Railroad  Commission,  while  Act  39  of  1906  gave 
pipe  line  companies  the  right  of  expropriation  etc. 

Act  76  of  1920  undertakes  to  amend  and  re-enace  No.  36 
of  1906,  and  to  correct  certain  defects  in  that  act,  and  makes 
all  pipe  lines  common  carriers  subject  to  the  regulations  of 
the  Railroad  Commission.  "Common  carrier"  is  defined  to 
mean  "all  persons,  firms  or  corporations  engaged  in  the  trans- 
portation of  crude  petroleum  as  'common  carriers'  for  hire; 
or  which  upon  proper  showing  may  be  legally  held  to  be  a 
'common  carrier'  from  the  nature  of  the  business  conducted 
or  from  the  manner  in  which  such  business  is  carried  on." 

The  act  defines  "pipe  line"  as  including  "the  real  estate, 
rights  of  way,  pipe  in  line,  tank  facilities  as  herein  designated, 
and  necessary  for  the  proper  conduct  of  its  business  as  a  com- 
mon carrier,  all  fixtures,  equipment  and  personal  property  of 
every  kind  owned,  controlled,  operated,  used  or  managed,  in 
connection  with,  or  to  facilitate  the  transportation,  distribu- 
tion and  delivering  of  crude  petroleum  through  lines  con- 
structed of  pipe." 

The  right  to  run  along,  over  and  across  roads,  streams,  etc., 
is  given  to  pipe  lines  under  certain  conditions;  the  Railroad 
Commission  is  given  the  power  to  establish  rates  and  charges 
and  regulations  after  proper  hearing;  common  carriers  shall 
exchange  tonnage  and  maintain  reasonable  facilities  for  the 
business;  they  shall  make  and  publish  tariffs ;  they  shall  not 
discriminate  against  or  between  shippers  and  owners;  they 


106  PIPE  LINES 

are  considered  as  shippers  of  their  own  oil ;  when  offered  more 
oil  than  they  can  transport,  it  shall  be  equitably  proportioned ; 
they  may  deliver  the  same  oil  received  or  from  common  stock 
of  the  same  kind  and  value;  persons  dissatisfied  with  the  ac- 
tion of  the  Railroad  Commission  may  restor  to  the  courts, 
etc. 

Violation  of  the  provisions  of  the  act  or  failure  to  obey 
the  orders  of  the  Railroad  Commission  shall  be  a  misdemean- 
or and  penalties  are  provided  for  discriminations.  The  act 
repeals  all  laws  in  conflict  therewith.  It  appears,  therefore, 
that  it  supercedes  and  repeals  Act  39  of  1906  entirely  since  it 
purports  to  cover  the  subject  matter  covered  by  that  act.  It 
contains  the  provision,  however,  that  it  is  "cumulative  of  all 
laws  of  this  State  which  are  not  in  direct  conflict  *  *  regu- 
lating the  control  of  common  carrier  pipe  line  companies/' 

The  Constitution  of  1921  changes  the  name  of  the  Railroad 
Commission  to  "Louisiana  Public  Service  Commission." 

By  Act  45  of  1921,  the  Levee  Boards  are  required  to  give 
owners  of  pipe  lines  30  days'  notice  that  levee  is  to  be  moved, 
or  pay  the  cost  of  moving  the  pipe. 

Act  172  of  1902  gives  all  pipe  line  companies  organized  in 
Louisiana  the  right  to  issue  bonds  and  obligations  secured  by 
mortgage  of  the  franchise,  property,  income,  revenues,  etc., 
of  the  company.  While  Act  22  of  E.  S.  1918  authorizes  muni- 
cipalities to  acquire,  own  and  operate  gas  pipe  lines  both  with- 
in and  without  the  city  limits,  acquire  leases,  drill  wells,  etc., 
and  to  expropriate  existing  lines  in  and  out  of  the  city  limits, 
and  to  mortgage  the  same,  etc. 

Act  70  of  1921,  authorizes  Parishes  and  Municipalities  to 
acquire  and  construct  gas  pipe  lines. 


CONSERVATION  107 

Act  119  of  1918  permits  the  provisional  sale  of  tank  cars, 
giving  the  vendor  the  right  to  hold  the  title  to  same  until  paid 
and  to  repossess  the  same  if  not  paid.  And  Act  9  of  E.  S. 
1917  subjects  all  rolling  stock  to  taxation. 

In  Constantine  Refining  Co.  v.  Day,  147  La.  623,  and  same 
v.  Ricaud,  147  La.  634,  this  act  was  held  constitutional  and 
tank  cars  were  subjected  to  taxation  for  State  purposes,  but 
that  portion  of  the  act  fixing  the  situs  of  such  property  in  a 
subdivision  of  the  State  where  the  cars  had  never  been,  for 
purposes  of  local  taxation,  was  declared  illegal. 

Act  198  of  1918,  provides  for  the  mortgage  of  all  kinds  of 
machinery,  oil  well  casing,  line  pipes,  rigs,  tanks,  tank  cars 
and  all  movable  property. 

The  fact  that  a  valve  and  outlet  cap  on  an  oil  tank  car  were 
improperly  adjusted  by  the  shipper  will  not  relieve  the  car- 
rier from  liability  for  its  negligence  in  failing  to  stop  the  leak- 
age. Southern  Cotton  Oil  Co.  v.  New  Orleans  &  N.  E.  R. 
Co.,  146  La.  541. 

Interocean  Oil  Co.  v.  Ames,  149  La.,  deals  with  damages 
for  breach  of  contract  to  transport  oil  by  steamer. 

Act  53  of  1920  makes  receipts  for  stored  oil  negotiable, 
under  the  uniform  warehouse  receipt  law.  See  Act  in  appen- 
dix. 

Sec.  65.  Conservation. 

The  Conservation  policy  of  the  State  relative  to  oil,  gas  and 
minerals  is  expressed  in  a  number  of  statutory  provisions 
passed  since  1906.  The  administration  of  the  conservation 
laws  has  been  changed  a  number  of  times  and  at  present  the 
provisions  are  complicated  and  in  some  instances  conflicting, 
and  there  is  need  of  a  general  revision. 


108  CONSERVATION 

The  first  statutes  dealt  with  the  closing  of  wild  gas  wells 
and  provided  for  certain  investigations  and  reports,  and  the 
legislation  has  culminated  in  the  Common-purchaser  Acts  of 
1918  and  1920,  which  go  a  step  beyond  the  ordinary  limits  of 
conservation  legislation,  and  seek  to  remedy  economic  condi- 
tions. 

An  outline  of  the  Conservation  laws  follows.  The  acts  in 
full  will  be  found  in  the  appendix. 

Act  144  of  1908  established  a  temporary  Commission  on 
the  Conservation  of  Natural  Resources,  which  was  composed 
of  several  State  officials,  who  served  without  compensation, 
and  a  paid  secretary  The  duty  of  this  commission  was  to 
inquire  into  and  make  certain  reports  concerning  forestry,  re- 
clamation of  lands,  and  prevention  of  waste  in  the  extraction 
of  oil,  gas  and  other  minerals,  such  report  to  be  made  to  the 
General  Assembly  with  recommendation  for  necessary  legis- 
lation This  act  carried  a  small  appropriation  for  the  use  of 
this  commission,  and  was  repealed  by  subsequent  legisaltion. 

Act  172  of  1910  amended  and  re-enacted  the  previous  act 
and  created  a  board  known  as  the  "Conservation  Commis- 
sion" composed  of  some  eight  members  of  whom  several  were 
State  Officials,  and  the  others  to  be  appointed  by  the  Gov- 
ernor, the  members  serving  without  compensation,  but  being 
provided  with  a  paid  Secretary.  Its  duties  were  the  same  as 
prescribed  in  the  previous  act,  that  is,  making  certain  reports 
and  recommendations,  with  additional  power  upon  emergen- 
cies to  expend  certain  moneys  to  promote,  protect  and  save 
the  natural  resources  of  the  State,  and  this  act  also  provided 
that  the  commission  should  confer  with  other  State  Commis- 
sions and  Federal  Commissions.  This  act  also  carried  a  small 
appropriation,  and  it  has  been  superceded  by  later  laws. 


CONSERVATION  109 

Act  254  of  1910,  established  a  "Department  of  Mining  and 
Minerals"  with  a  "Supervisor  of  Minerals,"  and  a  Deputy 
Supervisor,  who  should  be  an  experienced  oil  and  gas  man 
and  geologist. 

The  Supervisor  was  authorized  to  make  inspections  and  to 
see  that  precautions  were  taken  to  insure  the  health  and  safe- 
ty of  workmen  and  to  see  that  all  laws  were  enforced.  He 
was  to  make  annual  reports  to  the  Conservation  Commission, 
and  was  authorized  to  prohibit  unsafe  and  dangerous  and 
wasteful  operations,  etc.,  and  to  see  that  all  operators  subject 
to  license  tax  should  pay  the  same.  The  act  makes  violations 
a  misdemeanor  and  repeals  all  laws  in  conflict. 

All  of  these  laws  were  merely  makeshifts,  however,  and  it 
was  soon  realized  that  the  conservation  policy  of  the  state 
would  continue  to  suffer  unless  more  stringent  laws  were 
passed. 

Therefore,  in  1912,  the  legislature  provided  the  foundation 
of  the  present  Conservation  system  of  the  State  in  Act  127 
of  1912.  It  need  not  be  said  that  the  present  system  could  be 
vastly  improved  upon. 

Act  127  of  1912,  created  a  Conservation  Commission  com- 
posed of  three  paid  commissioners,  one  of  whom  was  desig- 
nated as  "President"  and  provision  was  made  in  the  act  for 
the  necessary  employees,  assistants,  etc. 

The  title  of  this  Act  authorizes  the  Conservation  Commis- 
sion to  discharge  the  duties  and  functions  heretofore  assigned 
to  the  Department  of  Mining  and  Minerals,  but  there  appears 
to  be  no  express  provision  in  the  body  of  the  act,  relative  to 
this.  There  seems  to  be  no  question  however,  that  this  act 
repeals  the  Act  relative  to  the  Department  of  Mining  and 
Minerals. 


110  CONSERVATION 

The  Commission  under  this  Act  is  made  a  department  of 
the  State  Government,  for  the  purpose  of  the  protection,  man- 
agement and  Consevration  of  the  wild  life  of  the  State,  oy- 
sters, fish,  etc.,  and  the  natural  and  mineral  and  forestry  re- 
sources of  the  State.  The  commission  is  also  created  as  a 
body  politic,  or  political  corporations,  possessing  all  powers 
inherent  in  such  corporations,  with  authority  to  sue  and  be 
sued,  etc. 

It  is  the  duty  of  the  Commission  to  collect  statistics;  to 
adopt  rules  and  regulations  for  the  control  of  the  natural  re- 
sources of  the  State,  including  minerals,  which  rules  however, 
may  be  contested  in  the  courts;  to  make  reports  to  the  Gov- 
ernor; to  enforce  all  laws  relating  to  minerals;  and  to  assist 
in  the  development  of  the  natural  resources  of  the  State;  to 
initiate  and  prosecute  civil  actions  under  the  laws  adminis- 
tered by  it,  and  to  report  violations  of  the  criminal  laws  to  the 
District  Attorney  and  see  that  they  are  prosecuted  (and  the 
mandatory  duty  is  imposed  upon  the  District  Attorney  to 
prosecute  such  cases)  ;  to  make  reports  to  the  General  Assem- 
bly, etc. 

The  act  created  a  fund  known  as  the  "Conservation  Fund" 
to  be  made  up  of  all  amounts  collected  by  the  Commission. 

The  Officers  and  employees  of  the  commission  are  required 
to  give  bond,  and  are  prohibited  from  being  interested  in  the 
exploiting  for  personal  gain  any  of  the  natural  resources  of 
the  State  or  to  be  employed  by  anyone  so  engaged  under  pen- 
alty of  dismissal  and  forfeiture  of  any  rights  so  acquired. 

The  commission  is  given  the  right  to  appoint  special  con- 
servation agents,  and  all  sheriffs,  constables  and  peace  offi- 
cers are  given  the  powers  of  conservation  agents. 


CONSERVATION  111 

The  commission  is  charged  with  the  duty  of  carrying  out 
the  provisions  of  Act  172  of  1910,  previously  referred  to,  and 
to  discharge  the  functions  given  the  commission  under  that 
act. 

The  act  provides  certain  penalties  for  violation  of  its  pro- 
vision and  repeals  all  laws  in  conflict.  (See  State  v.  King, 
133  La.  568.) 

Act  66  of  1916  amends  Act  127  of  1912  by  changing  the 
name  of  the  commission  to  "Department  of  Conservation"  and 
provides  that  the  same  shall  be  directed  and  controlled  by  a 
"Commissioner  of  Conservation,"  to  be  appointed  by  the  Gov- 
ernor, and  the  Act  does  away  with  the  other  two  members 
of  the  commission. 

Act  105  of  1918  makes  minor  changes  in  Act  127  of  1912, 
and  Act  66  of  1916,  and  gives  conservation  officers  authority 
to  carry  arms. 

Act  250  of  1920  delegates  to  the  Department  of  Conserva- 
tion greater  power  and  authority  in  the  work  of  conserving 
the  crude  petroleum,  natural  gas  and  mineral  substances  of 
the  State,  and  this  is  the  act  under  which  the  Department  is 
now  operating. 

It  gives  the  department  authority  to  adopt  such  rules  and 
regulations  as  it  may  deem  necessary  for  the  drilling  develop- 
ment, sinking,  deepening,  abandoning  and  operation  of  oil 
and  gas  wells,  and  to  prevent  waste  from  same  and  to  require 
persons  to  make  reports  relative  to  same;  (all  of  which  rules 
may  be  contested  in  Court)  to  adopt  rules  and  regulations  re- 
quiring that  gasoline  be  extracted  from  natural  gas  before 
using  the  same  for  carbon ;  to  have  full  supervision  over  the 
production  and  use  of  gas  in  connection  with  the  manufac- 


112  CONSERVATION 

ture  of  carbon  black  and  other  manufacturing  enterprises  and 
for  domestic  use;  and  to  limit  the  amount  of  gas  to  be  taken 
from  particular  fields  or  areas;  to  adopt  rules  and  regula- 
tions making  it  unlawful  for  persons  negligently  to  permit 
oil  and  gas  wells  to  go  wild  or  become  uncontrollable;  and  to 
require  diligent  efforts  to  close  the  same,  and  in  case  of  de- 
fault, the  Department  shall  have  the  right  to  take  charge  of 
such  wells  and  close  same  at  the  expense  of  the  owners  and 
gives  the  Department  a  lien  to  protect  it  for  expenditures. 
The  act  defines  "waste"  as  including  underground  waste, 
surface  waste  and  any  unreasonable  waste  or  leakage  in  the 
production  of  oil,  gas  and  other  minerals. 

The  Department  is  given  the  right  to  enforce  its  rules  and 
regulations  in  the  Courts  and  the  violation  of  such  rules  and 
regulations  is  made  a  misdemeanor  . 

The  right  of  injunction  against  the  Department  is  cur- 
tailed. 

All  actions,  writs,  etc.,  relating  to  the  department  are  tried 
summarily. 

The  Attorney-General  and  District  Attorney  represent  the 
Department. 

This  act  repeals  all  laws  in  conflict. 

Act  268  of  1918  makes  it  unlawful  to  permit  the  waste  of 
natural  gas  or  to  use  natural  gas  for  any  purpose  in  such 
manner  as  to  threaten  with  premature  exhaustion,  extinction 
or  destruction  the  common  supply  or  common  reservoir  trom 
which  natural  gas  is  drawn,  and  defines  "waste."  It  makes 
it  the  imperative  duty  of  the  Department  to  make  frequent  in- 
spections and  investigations  and  to  stop  waste,  and  the  power 
of  injunction  without  bond  is  given.  The  Department  is  also 


CONSERVATION  113 

given  the  power  to  regulate  the  use  of  pumps  and  artificial 
means  of  increasing  natural  flow.  The  act  also  provides  that 
manufactures  and  sellers  shall  make  semi-annual  reports  to 
the  Department  and  the  Department  shall  report  to  the  Gov- 
ernor and  Police  Juries ;  and  the  District  Judges  are  also  in- 
structed to  charge  the  grand  juries  to  investigate  waste. 

Penalties  of  fine  and  imprisonment  are  imposed  for  viola- 
tions of  this  act.  This  act  does  not  repeal  any  laws  except 
those  inconsistent  with  its  provisions. 

Act  270  of  1918,  which  declares  its  purpose  to  be  for  con- 
servation, provides  that  whenever  the  full  production  from 
any  gas  field  is  in  excess  of  demand,  then  only  such  propor- 
tion as  can  be  marketed  without  waste  shall  be  taken,  and  any 
^erson  taking  same  shall  only  take  his  proportion  of  the  total 
flow,  subject  to  action  of  the  "Conservation  Commission"  in 
permitting  a  greater  quantity  to  be  taken 

The  act  makes  all  persons  engaged  in  purchasing  and  sell- 
ing natural  gas  "common  purchasers"  and  provides  that  they 
must  buy  at  their  trunk  lines,  and  prohibits  discrimination  in 
buying  gas  and  makes  the  purchaser  take  the  same  ratably 
where  he  does  not  take  all;  it  also  gives  him  the  right  to  buy 
from  any  owner,  the  provisions  of  the  act  being  under  the 
supervision  of  the  "Conservation  Commission,"  and  the  viola- 
tion of  the  provisions  of  the  act  being  a  misdemeanor.  This 
Act  repeals  all  laws  in  conflict. 

Act  73  of  1920  also  expresses  its  purpose  to  be  for  Conser- 
vation, and  provides  that  during  periods  of  over-production, 
all  buying  agencies  shall  accord  to  each  oil  producer  in  the 
field  the  opportunity  to  sell  his  proportion  of  the  oil  purchased 
and  prohibits  buying  agencies  from  taking  from  the  field  a 


114  CONSERVATION 

greater  proportion  of  their  own  oil  than  taken  from  other 
producers.  The  act  does  not  force  the  producer  to  sell  nor 
prevent  him  from  storing  his  oil.  And  the  provisions  of  the 
Act  do  not  apply  to  purchasers  of  less  than  500  barrels  a  day 
and  who  transport  such  oil  through  their  own  facilities 

The  act  provides  for  public  hearing  by  the  Conservation 
Commissioner  to  establish  when  a  period  of  over-production 
txists  and  for  the  appointment  of  a  supervisor  and  assistants 
for  the  field  during  such  period,  who  shall  make  necessary 
gaugings  of  oil  and  inspections  of  property,  books,  etc.,  to  as- 
certain the  facts  and  make  rules  and  regulations,  subect  to 
review  by  the  Conservation  Commissioner  and  the  Courts. 

Violation  of  the  provisions  of  the  act  is  made  a  misdemean- 
or. 

Act  190  of  1920  provides  that  when  an  oil  or  gas  well  is 
abandoned  or  no  longer  operated,  it  shall  be  the  duty  of  the 
operator  having  custody  of  same,  and  the  owner  of  the  land, 
to  stop  and  plug  the  same  in  the  manner  provided  in  the  act ; 
and  the  act  makes  it  unlawful  to  permit  the  waste  of  oil  or 
gas;  the  Supervisor  of  Minerals  is  given  authority  to  make 
regulations  for  the  boring  of  oil  and  gas  wells  and  violation 
of  such  regulations  and  provisions  of  the  act  is  made  a  mis- 
demeanor. The  act  further  provides  that  if  the  person  in 
whose  custody  or  control  the  well  is,  should  fail  to  comply 
with  the  -act,  adacent  possessors  may  enter  on  the  land  and 
control  the  well  and  shall  have  an  action  to  recover  expenses 
and  costs  and  Attorney's  fees. 

The  act  repeals  all  laws  in  conflict. 

Act  71  of  1906,  as  amended  by  Act  283  of  1910,  declares 
it  unlawful  and  a  nuisance  negligently  to  permit  gas  wells  to 


CONSERVATION  115 

become  wild  or  uncontrollable  and  provides  that  if  operations 
to  close  the  same  are  not  begun  in  good  faith  within  five  days 
after  notice,  and  in  the  event  the  wraste  is  not  stopped,  the 
State  Board  of  Engineers  shall  take  charge  of  the  well  and 
close  same  at  the  expense  of  the  owner  and  the  State  is  given 
a  lien  to  cover  the  expense. 

The  act  further  makes  it  a  misdemeanor  to  set  fire  to  a  gas 
well  or  negligently  to  permit  a  well  to  go  wild  or  become  un- 
controllable or  to  permit  gas  wastefully  to  escape  or  burn; 
also  to  abandon  any  well  without  plugging  same. 

It  appears  however,  that  the  foregoing  acts  (190  of  1910 
and  71  of  1906)  have  been  partially,  if  not  wholly,  repealed 
by  subsequent  legislation,  especially  Act  127  of  1912,  and 
amendments,  and  250  of  1920  and  268  of  1918. 

Act  41  of  1914  placed  under  the  administration  of  the  Con- 
servation Commission  the  collection  of  the  license  tax  on  oil 
and  gas,  but  this  act  has  also  been  repealed  by  subsequent 
legislation. 

In  the  case  of  Department  of  Conservation  v.  La.  Gas  & 
Fuel  Company,  Inc.,  144  La.  962,  the  Department  assayed  to 
exercise  its  right  to  close  gas  wells,  etc.,  under  Act  268  of 
1918,  but  the  right  was  neither  denied  nor  passed  upon  by  the 
Supreme  Court  as  the  decision  dealt  with  other  matters.  It 
was  held  in  this  case,  however,  that  the  "Conservation  Com- 
mission" and  "Department  of  Conservation"  were  one  and 
the  same  and  the  Department  could  be  impleaded  under  the 
name  of  "Conservation  Commission." 

The  Department  of  Conservation  has  adpoted  a  number 
of  rules  and  regulations  under  the  foregoing  laws,  a  copy 
of  which  will  be  found  in  the  Appendix. 


116  LESION,  FRAUD,  ERROR 

Sec.  66.  Lesion,  fraud,  error,  etc. 

In  the  case  of  Butler  v.  Marston,  146  La.  41,  a  redemption 
sale  was  attacked  on  the  ground  that  it  was  a  mere  security 
contract  and  on  the  ground  of  lesion  beyond  moiety,  it  ap- 
pearing that  the  land  was  nearly  valueless  at  the  time  of  sale, 
but  worth  $100,000.00  at  the  time  of  suit. 

The  court  found  that  the  purchaser  acted  in  good  faith,  and 
that  the  contract  was  a  redemption  sale  in  fact,  and  stated 
further  that  the  time  to  consider  the  value  was  when  the  buy- 
er was  considering  putting  his  money  in  it  and  not  after  it 
had  acquired  a  value  of  $100,000.00  from  the  discovery  of  oil. 

When  a  fraudulent  transaction  is  alleged,  it  must,  of 
course,  be  shown.  Black  Bayou  Oil  Co.  v.  Pyron,  129  La. 
118;  Gulf  Refining  Company  v.  Carroll,  145  La.  299;  Raines 
v.  Dunson  145  La.  525;  Denman  v.  Wilder,  148  La.  481 
(April  2-21).  And  a  cause  of  action  based  on  fraud  is  a  per- 
sonal action.  Martel  v.  Jennings-Heywood,  114  La.  356. 

And  where  a  contract  is  sought  to  be  reformed  on  the  ground 
of  fraud  or  error,  there  must  be  clear  proof  of  the  antecedent 
contract  and  the  error  in  reducing  it  to  writing.  Rogers  v.  S. 

H.  Bolinger  Co.,  149  La (In  this  case  the  contention  was 

made  that  a  mineral  reservation  in  a  deed  was  made  through 
fraud  or  error,  but  the  contention  was  not  sustained). 

It  was  said  in  Jennings-Heywood  Oil  Company,  119  La. 
852,  that  the  plea  of  error  or  lesion  presupposses  the  existence 
of  a  contract,  and  in  Caddo  Oil  &  Mining  Co.  v.  Producers 
Oil  Co.,  134  La.  718,  the  court  stated  that  where  a  lessor  com- 
plains of  insufficient  development  upon  allegation  and  proof 
of  fraud,  he  would  be  entitled  to  relief. 

The  Court  does  not  look  with  favor  upon  stale  claims  which 


SPECIFIC   PERFORMANCE  117 

are  only  pressed  after  an  oil  field  is  discovered.  Cochran  Oil 
&  Development  Co.  v.  Arnaudet,  111  La.  587.  And  in  Jen- 
nings-Heywood  v.  Houssier-Latreille,  119  La.  842,  the  Court 
quoted  the  language  of  Twin-Lick  Oil  Co.  v.  Marbury,  91  U. 
S.  592,  23  La.  Ed.  331,  where  the  Supreme  court  said: 

"The  fluctuating  character  and  value  of  this  class  of  prop- 
erty is  remarkably  illustrated  in  the  history  of  the  production 
of  mineral  oil  from  wells.  Property  worth  thousands  today 
is  worth  nothing  tomorrow;  and  that  which  would  today  sell 
for  $1,000.00  as  its  fair  value  may,  by  the  natural  changes  of 
a  week  or  the  enerby  and  courage  of  a  desperate  enterprise,  in 
the  same  time  be  made  to  yield  that  much  every  day.  The  in- 
justice, therefore,  is  obvious  of  permitting  one  holding  the 
right  to  assert  an  ownership  in  such  property  to  voluntarily 
await  the  event,  and  then  come  in  and  share  the  profit/' 

Sec.  67.   Specific  performance. 

The  Court  was  asked  to  order  the  specific  performance  of 
an  obligation  to  drill  oil  wells,  in  Caddo  Oil  &  Mining  Co.  v. 
Producers  Oil  Co.,  134  La.  701,  but  this  relief  was  denied,  the 
court  saying:  "One  cannot  be  forced  to  drill  a  well  for  oil,  as 
such  operations  would  not  be  within  the  power  of  the  court 
to  enforce.  It  would  be  subject  to  many  contingencies.  It  is 
entirely  impractical.  For  that  reason  the  courts  have  invari- 
ably annulled  contracts  and  have  not  ordered  specific  per- 
formance in  cases  similar  to  the  present  one."  And  the  sylla- 
bus in  that  case  further  states  that  from  the  nature  of  the  un- 
dertaking the  court  would  not  be  able  to  supervise  the  \vork 
so  as  to  enforce  the  decree. 

Courts  will  not  enforce  uncertain  and  inequitable  contracts 
and  contract  requiring  the  continued  supervision  of  the  court 
and  the  personal  services  of  the  parties  which  they  could  not 


118  PROCEDURE 

be  compelled  to  perform.  Snyder  v.  Wilder,  146  La.  811, 
citing  Federal  Oil  Co.  v.  Western  Oil  Co.,  112  Fed.  376  on 
the  point  that  specific  performance  will  not  be  ordered  against 
one  party  where  the  other  may,  at  his  option,  refuse  to  carry 
out  his  part  of  the  contract.  Citing  also  Lone  Star  Salt  Co. 
v.  Texas  S.  L.  R.,  99  Tex.  445,  90  S.  W.  867,L.  R.  A.  (N.  S.) 
835.  In  the  Snyder  v.  Wilder  case  the  agreement  related  to 
the  transfer  and  sale  of  certain  leases,  the  acquisition  of 
others,  and  the  drilling  of  a  well. 

Nor  will  the  courts  order  the  specific  performance  of  a  con- 
tract where  the  parties  agree  to  close  the  doors  of  the  courts 
upon  themselves  with  regard  to  matters  to  arise  in  the  future. 
Saint  v.  Martel,  127  La.  73. 

The  only  reason  for  awarding  damages  for  breach  of  con- 
tract is  because  specific  performance  cannot  be  had;  and  spe- 
cific performance  being  the  more  complete  remedy,  it  will  be 
ordered  where  possible.  So,  a  lessor  will  be  ordered  to  turn 
over  to  a  lessee  his  portion  of  oil  produced  from  the  leased  land 
and  the  lessee  will  be  recognized  as  owner  of  an  interest  in  a 
well  drilled  by  his  lessor.  Gulf  Refining  Co.  v.  Hayne,  148 
La.  340. 

And  where  a  mineral  contract  involves  merely  the  transfer 
of  the  land,  of  course  specific  performance  will  be  ordered,  and 
in  the  case  of  Anse  LaButte  Oil  Co.  v.  Babb,  122  La.  415, 
where  the  contract  gave  the  lessee  the  right  upon  discovering 
oil  to  buy  the  land  covered  by  the  lease  and  he  sued  for  specific 
performance,  while  the  case  went  off  on  other  points,  it  is 
apparent  that  the  court  considered  his  action  as  a  proper  one. 

Sec.  68.  Procedure. 

While  procedure  in  actions  respecting  leases,  minerals,  etc., 


PROCEDURE  119 

is  necessarily  the  same  as  in  cases  governing  other  rights  and 
contracts,  and  the  general  provisions  on  those  subjects  must 
be  considered,  yet  this  work  would  perhaps  be  incomplete 
without  a  brief  discussion  of  some  of  those  principles  as  they 
have  been  applied  in  actual  cases  affecting  oil  and  gas  rights. 
There  are  also  some  few  special  statutory  provisions  which 
might  well  be  reviewed. 

Act  60  of  1920  provides  a  method  of  summary  trial  of  suits 
affecting  oil  and  gas  leases.  Act  76  of  1920,  relative  to  pipe 
lines  as  common  carriers  makes  all  suits  relative  to  the  orders 
of  the  Railroad  Commission  preference  cases,  and  the  same 
act  provides  that  the  orders,  decisions,  rules,  rates  and  regu- 
lations of  the  Commission  may  be  suspended  by  injunction 
upon  bond  in  an  amount  fixed  by  the  Court.  See  also  the 
laws  relating  to  the  Department  of  Conservation  and  the  pro- 
visions relative  to  writs  of  injunction  by  and  against  the  De- 
partment. See  also  Act  29  of  1915  relative  to  injunction 
against  lessees  of  the  State,  etc. 

In  considering  the  procedure  in  suits  affecting  oil  and  gas 
rights,  a  perusal  of  the  various  branches  of  the  litigation  be- 
tween the  Jennings-Heywood  Oil  Syndicate  and  the  Hous- 
siere-Laterille  Oil  Co.,  and  the  various  persons  connected 
therewith,  which  cases  are  many  times  referred  to  herein,  is 
an  education  in  itself.  See  also  Martel  v.  Jennings-Heywood 
Oil  Syndicate,  115  La.  615-622  not  referred  to  elsewhere 
herein. 

The  question  of  title  cannot  be  gone  into  in  a  possessory 
action,  hence  in  contests  over  mineral  lands  and  leases  the 
possessory  action  will  not  give  adequate  relief  where  questions 
of  title  are  involved.  Producers  Oil  Co.  v.  Hanzen  et  al.,  132 
La.  691;  Houssiers-Laterille  v.  Jennings-Heywood,  115  La. 


120  PROCEDURE 

107;  Jennings-Heywood  v.  Houssiers-Latereille,  119  La.  793, 
113  La.  619,  116  La.  1053,  117  La.  960. 

Where  one  answers  a  suit  claiming  a  real  right  in  prop- 
erty he  presents  to  the  court  the  question  of  the  validity  of 
his  title.  Wilson  v.  Pierson,  143  La.  289;  Slattery  v.  Ar- 
kansas Natural  Gas  Co.,  138  La.  793.  And  a  suit  for  can- 
cellation and  annullment  of  a  lease,  is,  of  course,  different 
from  a  petitory  action.  Cook  v.  Gulf  Refining  Co.,  135 
La.  609. 

The  direct  action  to  rescind  thd^  contract  is  -frequently 
resorted  to.  Murray  v.  Earnhardt,  117  La.  1023;  Berl  v. 
Kehoe,  130  La.  1020;  Elder  v.  Sun  Co.  135  La.  943. 

Suit  to  quiet  title  and  slander  of  title  is  resorted  to  where 
a  purchaser  finds  a  lease  recorded  against  his  property. 
Gray  v.  Spring  et  al.,  129  La.  345 ;  Baird  v.  Atlas  Oil  Co., 
146  La.  1091. 

Persons  who  claim  a  real  right  to  land  which  has  been 
leased  to  a  defendant  in  a  cause  may  intervene  in  said 
cause.  Rives  v.  Gulf  Refining  Co.,  133  La.  178. 

For  petitionary  action  and  trespass,  see  DeSoto's  heirs 
v.  Standard  Oil  Co.,  139  La.  965;  Nilson  v.  Brinkerhoff, 
146  La.  697. 

Injunction  is  a  proper  remedy  against  a  trespasser  on  a 
mineral  lease.  Houston  Ice  &  Brewing  Co.  v.  Murray  Oil 
Co.,  145  La.  1053.  Injunction  may  issue  to  maintain  a  plain- 
tiff in  possession,  but  not  to  oust  one  from  possession  of  prop- 
erty. Pure  Oil  Co.  v.  Gulf  Refining  Co.  143  La.  284;  State 
v.  DeBallion,  113  La.  619. 

In  the  suit  of  De  Soto's  Heirs  v.  Standard  Oil  Co.,  139  La. 
965,  which  was  a  petitory  action  and  claim  for  damages  for 


PROCEDURE  121 

trespass  in  the  value  of  oil  illegally  extracted,  the  defedant 
lessee  claimed  that  under  provisions  of  the  Code  of  Practice, 
that  upon  giving  the  name  and  address  of  its  lessor  it  should 
be  dismissed  from  the  suit.  The  Supreme  Court  said:  "If 
this  suit  involved  merely  the  land  without  the  oil  alleged  to 
have  been  taken  from  it,  and  a  return  of  which  is  demanded, 
relators'  contention  would  be  well  founded,  but  it  involves 
also  the  oil  and  plaintiffs  are  entitled  to  have  both  demands 
passed  on  in  one  suit,  and,  if  their  claims  be  well  founded,  to 
have  a  judgment  against  the  relator  upon  the  latter  demand. 
The  lessors  could  not  stand  in  judgment  upon  it,  and  even  if 
they  could  a  judgment  against  them  for  the  return  of  the  oil 
or  for  payment  of  $1,250,000.00,  its  alleged  value,  might  be 
as  easily  made  effective  against  them  as  against  relator.  No 
doubt,  it  is  incumbent  upon  the  plaintiffs,  before  proceeding 
any  further  in  the  suit  to  cite  the  lessors  for  litigating  the 
question  of  title,  which  these  lessors  alone  are  qualified  to 
litigate." 

The  Supreme  Court  is  slow  to  interfere  with  the  District 
Court  in  matters  within  its  discretion  such  as  bonding  in- 
junctions. Jennings-Heywood  v.  Heywood  Oil  Co.,  117  La. 
536.  And  in  proceedings  involving  the  sequestration  of  oil 
etc.,  where  costs  are  taxed  by  the  District  Court  the  Supreme 
Court  will  presume  the  same  correct  unless  there  is  evidence 
to  the  contrary.  Jennings-Heywood  v.  Houssiere-Latreille, 
118  La.  262;  Martel  v.  Jennings-Heywood,  118  La.  391. 

A  judgment  for  an  undivided  interest  in  oil  lands  and  oil 
produced  cannot  be  executed  by  obtaining  a  writ  of  posses- 
sion, and  where  the  judgment  is  constituted  upon  the  reim- 
bursement of  certain  expenses,  such  reimbursement  would 
have  to  be  made  before  a  writ  of  possession  could  issue.  Mar- 
tel et  al  v.  Jennings-Heywood  Oil  Syndicate,  114  La.  903. 


122  PROCEDURE 

The  question  of  acquiescence  in  a  judgment  has  been  raised 
on  several  occasions  in  oil  litigation.  So;  Where  appellant 
has  executed  certain  division  orders  which  impart  acquies- 
cence in  the  judgment,  the  case  will  be  remanded  for  further 
evidence.  Wells  et  al  v.  Files,  131  La.  736.  And  an  appeal 
will  be  dismissed  where  there  is  an  acquiescence  by  receiving 
payment  of  royalties.  Jolley  v.  Vivian  Oil  Co.,  131  La.  937. 
And  where  it  is  claimed  that  appellants  have  acquiesced  in  a 
judgment  by  executing  deeds  in  accordance  with  a  judgment, 
the  case  will  be  remanded  for  evidence  on  that  point.  Wells 
v.  Files,  133  La.  219. 

Where,  since  an  appeal,  an  appellant  has  alleged  and  ad- 
mitted in  another  judicial  proceeding  that  he  has  no  title  to 
the  property  claimed  in  the  case  on  appeal,  a  plea  of  estoppel 
will  be  sustained  in  the  Supreme  Court.  Mohawk  Oil  Co.  v. 
Layne,  147  La.  895. 

In  Saunders  v.  Busch-Everett  Co.,  138  La.  1049,  after  ap- 
pealing from  a  judgment  upholding  a  lease,  the  plaintiff  and 
lessor  executed  a  deed  to  a  portion  of  his  land  in  which  he 
stated  it  was  leased  and  the  sale  was  made  subject  to  same 
and  included  an  interest  in  the  royalty  under  the  lease.  De- 
fendant and  appellate  moved  to  dismiss  the  appeal,  but  the 
court  refused  to  do  so,  stating  that  while  there  might  be 
ground  to  affirm  the  judgment,  that  an  acquiescence  in  a 
judgment,  to  take  away  the  right  of  an  appeal,  must  be  un- 
conditional, voluntary  and  an  absolute  acquiescence  by  appel- 
lant, and  he  must  have  intended  to  acquiesce  and  abandon  his 
right  of  appeal,  which  must  be  distinguished  from  an  ac- 
knowledgment of  the  correctness  of  a  judgment. 

Where  an  appellant  accepts  a  promise  of  development  pend- 
ing an  appeal  and  authorizes  the  appeal  to  be  dismissed  in 


PROCEDURE  123 

part,  the  appeal  will  be  dismissed  in  toto,  because  an  acquies- 
cence in  an  indivisible  judgment  has  occurred.  Rains  v.  Dun- 
son,  143  La.  321 ;  Jolley  v.  Vivian  Oil  Co.,  131  La.  937. 

In  Hutchinson  et  al  v.  Atlas  Oil  Co.,  148  La.  540,  motion 
to  dismiss  was  made  on  the  ground  that  defendant  had  ac- 
quiesced in  the  judgment  by  collecting  for  certain  gas,  but 
after  remanding  the  case  for  evidence  the  motion  was  denied 
on  the  facts. 

The  execution  of  a  mineral  lease  on  land  acquired  in  a  par- 
tition was  held  in  Myers  v.  Myers  et  al,  148  La.  174,  to  be  an 
acquiescence  in  the  partition  and  ground  for  the  dismissal  of 
an  appeal  in  a  suit  to  set  aside  the  partition. 

The  stipulated  price  of  an  unexecuted  lease  sought  to  be 
annulled,  governs  the  jurisdiction  on  appeal.  Elder  v.  Sun 
Co.,  135  La.  943. 

One  who  asserts  fraud  in  connection  with  a  written  lease 
has  the  burden  of  proving  it.  Chadwick  v.  Standard  Oil  Co., 
147  La.  668. 

An  action  involving  title  to  oil  lands,  pending  in  a  State 
Court,  will  not  be  stayed  because,  after  its  institution,  parties 
claiming  under  the  principal  defendant  therein  elect  to  raise 
the  issue  of  title  in  the  Federal  Court,  instead  of  intervening 
in  the  pending  suit.  Jennings-Heywood  v.  Houssiere-  La- 
treille,  119  La.  864.  See  also  Saint  v.  Martel  126  La.  245. 

See  Mohawk  Oil  Co.  v.  Layne,  270  Fed.  841,  in  re  State 
and  Federal  Courts. 

There  are  many  other  cases  involving  general  points  of 
practice  and  procedure  and  it  would  serve  no  useful  purpose 
to  review  them  in  detail.  Among  them  are :  State  ex  rel.  Saint 
v.  Martel,  123  La.  813,  853;  Standard  Oil  Co  v.  Drummers 
Oil  Co.,  138  La.  94;  Davis  v.  Safety  First  Oil  Co.,  138  La. 


124  SEQUESTRATION 

89;  Evangeline  Oil  Co.  v.  Traban,  126  La.  243;  Davis  &  Orr 
v.  Stringfellow,  138  La.  94;  Beck  v.  Natalie  Oil  Co.,  143  La. 
152;  Veoughan  &  Co.  v.  Equitable  Oil  Co.,  116  La.  773; 
Bradley  v.  Shreveport  Gas.  E.  Lt.  &  Pr.  Co.,  139  La.  1029; 
In  re  Wadkins,  129  La.  484;  Wadkins  v.  Producers  Oil  Co., 
130  La.  308  and  129  La.  484. 

Sec.  69.  Sequestration. 

Among  the  conservatory  measures  for  the  protection  of 
litigants  during  the  pendency  of  an  action,  the  ones  most  fre- 
quently resorted  to  in  oil  and  gas  litigations  have  been  seques- 
trations, both  by  writs  applied  for  as  incidental  demands  in 
suits  and  the  equitable  sequestration  ordered  by  the  Court, 
and  even  conventional  sequestration. 

The  District  Court  will  ex-officio  order  the  sequestration 
of  oil  discovered  during  the  pendency  of  suit,  even  after  ap- 
peal to  the  Supreme  Court.  Jennings-Heywood  Oil  Syndi- 
cate v.  DeBallion,  Judge,  113  La.  672;  State  ex  rel.  Jennings- 
Heywood  Oil  Syndicate  v.  DeBallion,  Judge,  113  La.  619; 
Jennings-Heywood  Oil  Syndicate  v.  Houssiere-Latreille  Oil 
Co.,  114  La.  573. 

A  judicial  sequestration  was  ordered  in  Martel  et  al  v.  Jen- 
nings-Heywood Oil  Syndicate,  114  La.  351,  where  plaintiffs 
were  claiming  1-5  of  certain  oil.  And  in  Martel  et  al  v.  Jen- 
nings-Heywood Oil  Syndicate,  115  La.  451,  the  court  stated 
that  the  proceeding  where  co-owners  cannot  agree  as  to  the 
disposition  of  the  property  is  a  suit  for  partition,  accompanied 
by  sequestration,  pendente  lite. 

One  entitled  to  sequestration  of  an  undivided  interest  is 
entitled  to  sequester  the  entire  property.  Gulf  Refining  Co. 
v.  Hayne,  148  La.  340.  See  also  Martel  v.  Jennings-Hey- 
wood Oil  Co.,  115  La.  451. 


SEQUESTRATION  125 

Whether  a  judicial  sequestration  shall  be  released  on  bond 
is  within  the  sound  discretion  of  the  Court.  Jennings-Hey- 
wood  Oil  Syndicate  v.  Houssiere  Latreille,  114  La.  573. 

Where  the  trial  Court  issued  an  ancillary  sequestration 
after  the  main  suit  had  been  transferred  to  the  appellate  court, 
held,  that  the  decision  of  the  main  suit  on  appeal  did  not  op- 
erate as  a  decision  of  the  sequestration,  and  that  after  the  de- 
cision of  the  main  suit  jurisdiction  remained  in  the  trial  court 
to  pass  upon  the  sequestration.  Houssiere-Latreille  v.  Jen- 
nings-Heywood,  116  La.  347. 

And  a  sequestration  does  not  become  ftmctus  officio  when 
judgment  is  rendered,  but  holds  the  property  until  the  judg- 
ment can  be  executed.  In  a  possessory  action,  however,  it 
does  not  hold  until  the  question  of  ownership  is  decided,  be- 
cause the  ownership  is  not  at  issue  in  such  an  action.  It  mere- 
ly holds  until  the  disposition  of  the  issues  involved.  Jennings- 
Heywood  Oil  Syndicate  v.  Houssiere-Latreille  Oil  Co.,  117 
La.  960.  See,  also,  113  La.  635  and  116  La.  1053. 

Where  an  ancillary  sequestration  is  issued  by  the  District 
Court  after  appeal  to  the  Supreme  Court,  the  control  of  the 
writ  is  in  the  hands  of  the  Court  in  which  the  sequestration 
is  pending  and  not  the  appellate  court.  Martel  v.  Jennings- 
Heywood,  114  La.  903. 

Where  a  judicial  sequestration  is  ordered,  the  party  cast 
in  the  suit  must  pay  the  costs  of  the  execution  of  the  writ. 
Jennings-Heywood  v.  Houssiere-Latreille,  116  La.  1053.  And 
this  is  true  even  though  the  decree  of  the  Supreme  Court  is 
silent  on  the  question,  because  if  properly  issued  it  is  main- 
tained at  the  cost  of  the  party  cast.  Jennings-Heywood  v. 
Houssiere-Latreille,  117  La.  960. 


126  SEQUESTRATION 

The  parties  in  interest  can  require  of  the  Sheriff  an  in- 
telligible account  of  the  oil  sequestered.  Jennings-Heywood 
Oil  Syndicate  v.  Houssiere-Latreille,  127  La.  921.  And  a 
judicial  sequestrator  can  be  proceeded  against  by  the  sum- 
mary process  of  rule  or  motion,  and  without  citation,  to  com- 
pel him  to  turn  over  and  account  for  property.  And  the  same 
is  true  of  a  conventional  acquestrator.  In  re  Bernstein,  145 
La.  1011. 

In  Crusel  v.  Brooks,  121  La.  243,  the  Court  found  that 
while  the  handling  of  sequestered  oil  by  a  Sheriff  requires 
special  care,  and  he  is  entitled  to  pay  as  a  necessary  expense 
for  keepers  and  guagers  and  bookkeepers,  etc.,  he  is  not  a  re- 
ceiver nor  quasi-receiver,  and  is  not  entitled  to  fees  for  an  at- 
torney who  gave  him  advice.  He  is  always  entitled,  however, 
to  recover  a  just  compensation  for  his  administration.  Jen- 
nings-Heywood v.  Houssiere-Latreille,  118  La.  262;  118  La. 
391. 

Charges  for  piping  and  storing  oil  must  be  regarded  as 
operating  expenses  to  be  borne  by  the  oil  and  not  as  costs, 
since  the  necessity  of  piping  and  storing  is  inherent  in  the  oil 
business.  But  a  Sheriff  in  charge  of  sequestered  oil  can 
make  any  reasonable  contracts  and  provisions  for  its  preser- 
vation, as  the  Sheriff  is  bound  to  administer  the  property  "as 
a  prudent  father  of  a  family  would  administer  his  own  af- 
fairs." His  contract  cannot,  of  course,  be  unconscionable. 
The  ordinary  charges  for  services  of  the  Sheriff  and  his  em- 
ployees are  properly  taxed  as  costs.  Jennings-Heywood  v. 
Houssiere-Latreille,  127  La.  971. 

In  Dickinson  v.  Texana  Oil  &  Ref.  Co.  et  al,  144  La.  489, 
the  appointment  of  a  judicial  sequestrator  was  prayed  for  to 
take  over  certain  producing  property  pending  decision  of  the 


PERSONAL   INJURIES— DAMAGES  127 

suit.  The  District  Judge  ordered  the  sequestration  on'  the 
face  of  plaintiff's  petition,  but  the  record  was  carried  up  to 
the  Supreme  Court  and  it  was  there  said  that,  "a  judge  should 
think  twice,  nay  three  and  more  times,  before  ordering  the 
ex-officio  sequestration  of  so  precarious  a  property  as  an  oil 
and  gas  lease,  requiring  special  qualifications  for  successful 
management,"  etc.,  before  placing  it  in  the  hands  of  an  ap- 
pointee of  the  Court.  And  the  order  for  a  sequestration  was 
set  aside  and  the  District  Judge  directed  in  acting  upon  the 
matter  of  whether  or  not  a  sequestration  should  issue  to  take 
into  consideration  all  the  pleadings  in  the  case  and  the  facts 
and  circumstances.  It  was  further  said  that  the  ex-officio 
sequestration  provided  for  by  Code  of  Practice  274  shall  issue 
only  when  "one  of  the  contending  parties  does  not  seem  to 
have  a  more  apparent  right  to  the  possession  that  the  other." 

Sequestration  was  resorted  to  as  an  incidental  demand  in 
State  v.  Richardson  et  al,  140  La.  329  and  Palmer  Co.  v.  Cot- 
ton Queen  Oil  Co.,  141  La.  305. 

By  Act  29  of  1915  where  the  State  is  lessor  no  injunction 
shall  lie  against  the  State's  lessee  to  restrain  development,  the 
remedy  being  confined  to  a  demand  for  judicial  sequestration 
until  a  decision  of  the  rights  of  the  parties.  This  sequestra- 
tion may  be  bonded,  or  the  oil  may  be  sold  under  order  of 
Court. 

Sec.   70.  Personal  Injuries — Damages. 

While  the  question  of  employer's  liability,  so  far  as  it  re- 
lates to  the  oil  and  gas  business,  is  now  to  be  determined  by 
the  Employer's  Liability  Act  (No.  20  of  1914  and  amend- 
ments), still  there  are  cases  where  this  act  does  not,  or  might 
not,  apply,  in  which  event  the  general  law  and  jurisprudence 


128  PERSONAL   INJURIES— DAMAGES 

would  apply,  and  the  review  of  the  several  cases  arising  prior 
to  the  passage  of  the  employer's  Liability  Act,  is  of  interest 
and  value. 

The  Employer's  Liability  Act  (No.  20  of  1914),  includes 
and  covers  "Every  person  performing  services  arising  out 
of  and  incidental  to  his  employment  in  the  course  of  his  em- 
ployer's trade,  business  or  occupation  in  the  following  hazard- 
ous trades,  business  and  occupations:  (a)  the  operation,  con- 
struction, repair,  removal,  maintenance  and  demolition  of  *  * 
"oil,  gas,  sulphur,  salt  and  other  wells  *  *."  See  Hardin  v. 
Higgins  Oil  &  Fuel  Co.,  147  La.  453;  Pye  v.  Southwestern 
Gas  &  E.  Co.,  147  La.  537;  Brooks  v.  Peerless  Oil  Co.,  (In- 
jury from  being  struck  on  head  with  tongs).  S.  R.  Zagst  v. 
Co.  v.  Southern  Surety  Co.,  148  La.  328  (injury  in  moving 
derrick — holding  general  way  of  moving  derrick  is  to  take 
it  down — compensation  allowed  for  injury  in  Texas  owing  to 
the  terms  of  the  insurance  contract. ) 

It  was  decided  in  the  case  of  Woodworth  v.  Producers  Oil 
Company,  142  La.,  368,  that  claims  for  damages  both  under 
the  general  law  and  the  Employer's  Liability  Act  could  be 
cumulated  in  the  alternative.  But  see  Philps  v.  Guy  Drilling 
Co.,  143  La.  951  and  Norwood  v.  Lake  Bistenean  Oil  Co.,  145 
La.  823.  The  claim  was  based  upon  an  allegation  of  negli- 
gence on  the  part  of  the  defendant  while  using  a  defective 
derrick  and  swivel,  and  placing  machinery  in  charge  of  in- 
experiencd  men. 

In  the  case  of  Ferringer  v.  Crowley  Oil  &  Mineral  Com- 
pany, 122  La.  441  plaintiff  sued  for  damage  occasioned  while 
he  was  repairing  a  hot-water  pipe,  which  was  in  bad  condi- 
tion, and  into  which  the  water  was  negligently  turned,  while 
he  was  working,  resulting  in  his  being  scalded,  and  the  court 


PERSONAL  INJURIES— DAMAGES  129 

held  the  master  liable  on  the  theory  that  he  cannot  make  the 
work  on  which  the  servant  is  injured,  more  hazardous  with- 
out notice  to  the  servant. 

In  the  case  of  Fuchs  et  al,  v.  K.  C.  S.  Ry.  Company,  132  La. 
782,  and  apprentice  was  sent  into  a  tank  car  without  being 
properly  warned.  He  carried  an  open  flame  for  a  light  and 
was  burned  to  death  when  the  gas  in  the  car  exploded,  and 
the  Court  held  that  it  was  negligence  to  send  an  inexperienced 
person  on  work  of  this  kind,  and  that  a  general  warning  was 
not  sufficient,  but  that  he  should  have  been  warned  particu- 
larly as  to  the  danger  of  this  occupation. 

In  the  case  of  Porter  v.  Rogers  Oil  &  Gas  Company,  139 
La.  1050,  damages  were  awarded  under  the  following  facts: 

The  defendants  were  deepening  a  well  at  2000  feet,  by  drill- 
ing by  hand,  the  procedure  being  that  several  pair  of  tongs 
each  operated  by  one  or  two  men  were  clamped  on  the  pipe, 
which  was  turned  in  this  way.  The  teeth  of  some  of  the  tongs 
were  worn  off,  several  pair  slipped  off,  but  one  pair  on  which 
the  teeth  were  good,  stuck  to  the  pipe  and  when  the  "strain" 
on  the  pipe  was  released,  the  pipe  revolved  backward,  carrying 
the  tongs  with  it  and  the  tongs  struck  the  defendant,  resulting 
in  his  death.  The  Court  awarded  damages  and  in  speaking  of 
this  method  of  drilling,  said : 

*Though  perhaps  not  demanded  by  statutes,  it  (hand 
drilling)  is,  from  a  moral  point  of  view  a  criminal,  trifling 
with  human  life,  in  which  apart  from  the  moral  and  humane 
aspect,  the  risk  of  loss  by  actions  in  damages  is  not  compen- 
sated by  the  saving  in  expenses." 

In  Haynes  v.  Fisher  Oil  Company,  et  al,  142  La.  890,  plain- 
tiff's son  was  killed  by  being  struck  by  a  broken  hook  which 
separated  while  being  hitched  to  a  4-inch  drill  stem  pipe, 


130  PERSONAL  INJURIES— DAMAGES 

which  was  being  pulled  from  the  well,  and  the  Court  held  the 
defendant  liable,  stating  that  an  employer  is  responsible  for 
injury  where  he  attempts  to  use  an  apparatus  that  is  gener- 
ally recognized  to  be  an  insufficient  size  or  strength  to  stand 
the  strain  put  upon  it. 

In  the  case  of  Iddle  v.  Hamler  Oil  &  Tank  Company,  138 
La.  97,  plaintiff  was  injured  by  falling  from  a  scaffold  while 
working  on  a  steel  tank,  and  the  Court  held  the  defendant 
guilty  of  negligence  because  of  its  failure  to  furnish  enough 
men,  and  its  failure  to  furnish  a  safe  place  to  work,  and  failure 
to  instruct  and  warn  an  inexperienced  workman  as  to  the  dan- 
ger of  the  work,  and  to  instruct  him  in  the  use  of  the  imple- 
ment with  which  he  worked. 

In  Murphy  v.  Standard  Oil  Co.,  of  Louisiana,  140  La. 
557,  plaintiff's  claim  for  damages  was  denied  on  the  ground 
that  where  an  employee  of  an  oil  company  adopts  an  unneces- 
sary and  admittedly  dangerous  method  of  throwing  in  the 
clutch  of  the  gas  engine  which  runs  the  pump  of  the  oil  well, 
the  employer  is  not  liable,  if  appearing  that  the  employee  was 
throwing  in  the  clutch  with  the  aid  of  a  long  piece  of  pipe 
which  was  knocked  violently  against  his  head  which  resulted 
in  his  injury. 

And  in  the  case  of  Wiggins  v.  Standard  Oil  Co.,  La.  141, 
532,  where  the  plaintiff  was  injured  "while  knocking  down'* 
pipe,  or  unscrewing  or  separating  pipe  taken  from  well,  the 
plaintiff's  claim  for  damage  was  refused  on  the  ground  that 
While  an  employer  is  negligent  in  failing  to  furnish  safe  tools 
for  the  employee  to  work  with,  this  doctrine  has  no  applica- 
tion where  a  simple  tool  like  a  hammer  has  no  other  defect 
than  being  too  heavy. 

In  Allen  v.  Atlas  Oil  Company,  140  La.  184,  it  was  held 


INSPECTION— EXPLOSIVES  131 

that  where  a  pumper  on  a  well  for  his  own  use  installs  a  bath 
tub  in  the  engine  room  and  members  of  the  family  use  it  and 
one  of  them  is  injured  as  a  consequence  of  falling  into  the 
machinery,  the  employer  is  not  liable  to  such  third  person 
who  is  at  most  a  mere  licensee. 

In  Alexander  v.  Standard  Oil  Co.,  of  La.  140  La.  54,  the 
court  held  the  defedant  liable  for  injury  to  a  boy  of  14  years 
who  was  injured  while  stepping  from  a  platform  on  top  of  a 
tank  to  another  platform  to  procure  a  pail  of  rivets  for  his 
work,  and  the  court  held  further  that  under  Act  301  of  1908, 
forbidding  employment;  of  children  under  14  years  in  any 
occupations  which  are  "unhealthful  or  dangerous,"  that  em- 
ployment in  a  refinery  plant  is  a  dangerous  occupation  under 
the  statutes,  and  that  working  on  a  4-foot  open  unguarded 
platform  26  feet  from  the  ground  is  a  dangerous  occupation. 

There  are  several  cases  relating  to  injuries  from  gas  dis- 
cussed under  that  head.  See  Cole  v.  Gas  Company  and  Ford 
v.  Gas  Company,  121  La.  771,  Rohr  v.  Gas  Light  Company, 
136  La.  546,  Bradley  v.  Gas  Company,  142  La.  49,  Wolff  v. 
Gas  Company,  138  La.  743. 

Sec.   71.  Inspection  of  oils,  explosive  oils,  etc. 

Act  199  of  1918  amends  Act  37  of  E.  S.  1877  by  providing: 
That  the  Board  of  Health  shall  have  control  of  the  inspection 
and  gauging  of  coal  oils  and  of  all  illuminating  oils  derived 
wholly  or  in  part  from  coal  or  petroleum,  etc.,  and  shall  make 
rules  and  regulations  relative  thereto. 

The  Board  shall  appoint  guagers  and  inspectors  throughout 
the  State. 

That  inspectors  shall  furnish  an  inspection  certificate  on 


132  TAXATION 

inspections  made  and  charge  a  fee  of  1-8  of  1  per  cent  per 
gallon  on  all  fluid  inspected. 

This  act  does  not  apply  to  oil  destined  for  sale  or  consump- 
tion out  of  the  tSate  and  all  such  oil  shall  be  branded  for  ex- 
port. 

The  penalties  are  invoked  by  a  civil  suit,  and  the  Board  has 
the  right  of  injunction  to  prevent  violations  of  the  act. 

In  Reed  v.  Nelson,  133  La.  968,  a  groceryman  was  sued  for 
damages  resulting  from  an  explosion  of  oil  sold  by  him  which 
consisted  of  "insurance  oil"  and  gasoline.  The  Court  reached 
the  conclusion  that  the  facts  did  not  support  plaintiffs  charges 
and  decided  for  defendant. 

The  case  of  City  of  Crowley  v.  Ellaworth,  113  La.  308,  lays 
down  the  rule  that  the  storage  of  explosive  oils  is  a  matter 
legitimately  subject  to  the  police  power  and  their  storage 
within  the  city  limits  may  be  regulated  or  prohibited. 

Sec.  72.     Taxation — Constitutional  Provisions. 

Article  230  of  the  Constitution  of  1898  exempted  from  tax- 
ation capital,  etc.,  employed  in  "mining  operations"  and  it 
was  held  in  Guffey  v.  Tax  Collector,  127  La.  466,  that  this 
exemption  did  not  apply  to  oil  operations;  while  in  Etchison 
Drilling  Company  v.  Flournoy,  131  La.  442  it  was  held  that 
Act  196  of  1910  was  unconstitutional  because  it  attempted 
to  levy  a  license  tax  on  production  of  oil  which  was  a  "mining 
pursuit,"  and  in  Calcasieu  Lumber  Company  v.  Reid,  146  La. 
77,  this  act  was  again  declared  unconstitutional.  The  consti- 
tution, however,  was  amended  by  Act  154  of  1910,  leaving 
out  this  exemption  and  the  constitutions  of  1913  and  1921, 
also  omit  it,  and  several  acts  have  since  been  passed  levying 
license  and  severance  taxes  on  oil  production. 


TAXATION  133 

Art.  229  of  the  Constitution  of  1898  (as  amended)  and 
Constitution  of  1913,  provided  for  an  annual  license  tax  on 
persons,  etc.,  "engaged  in  the  business  of  severing  natural 
products  from  the  soil,"  and  an  attempt  was  made  to  collect 
this  tax  from  the  land  owners.  But  in  State  v.  Stiles,  137  La. 
540,  it  was  held  that  Act  209  of  1912,  being  an  act  to  carry 
into  effect  Act  229  of  the  Constitution,  did  not  authorize  the 
collection  of  the  license  tax  from  a  land  owner,  not  engaged 
in  severing  the  product  and  who  only  received  a  royalty  from 
the  person  actually  producing  the  oil. 

License  or  Severance  Tax. 

Act  31  of  1920  passed  in  accordance  with  Art.  229  of  the 
Constitution  of  1913,  provides  for  an  annual  license  tax,  pay- 
able quarterly  on  oil  and  gas  production,  the  license  to  operate 
in  each  quarter  to  be  based  on  the  market  value  of  the  oil 
severed  in  the  preceeding  quarter.  The  act  provides  for 
sworn  quarterly  statements  of  the  quantity  and  actual  cash 
value  of  oil  produced,  together  with  any  further  information 
called  for  by  the  Supervisor  of  Public  Accounts.  The  tax  is 
2  per  cent  of  the  gross  value  of  total  production  in  its  unmanu- 
factured state  immediately  after  severance  and  shall  be  paid 
to  the  Parish  Tax  Collector. 

The  tax  is  due  by  those  actually  engaged  in  the  operation 
of  severing,  whether  owners  of  the  soil,  lessees  or  owners  of 
the  oil  and  gas. 

The  supervisor  of  Public  Accounts  has  authority  to  ex- 
amine books  and  witnesses,  etc.,  and  may  enforce  same  by 
the  process  of  the  Courts. 

The  tax  is  in  addition  to  all  real  estate  and  other  property 
taxes. 


134  TAXATION 

Penalties  are  prescribed  for  failure  to  pay  the  license. 

A  false  oath  in  connection  with  any  of  the  reports  required 
under  this  act  shall  be  punishable  as  perjury,  and  the  act  pro- 
vides for  a  fine  for  failure  to  make  reports. 

The  act  also  requires  all  purchasers  of  oil  to  make  quarter- 
ly statements  of  the  quantity  and  value  and  persons  from 
whom  purchased. 

The  law  repeals  all  others  in  conflict. 

The  cases  of  State  v.  Stiles,  137  La.  540  and  Standard  Oil 
Co.  v.  Police  Jury,  140  La.  42,  discuss  acts  and  provisions  no 
longer  in  effect. 

Previous  legislation  on  this  subject  was  embraced  in  Act 
196  of  1910,  209  of  1912,  296  of  1914,  10  of  1916  and  145  of 
1916,  20  of  S.  S.  1918,  82  of  1918,  etc. 

The  Constitution  of  1921  provides  for  a  severance  tax  to 
be  paid  proportionally  by  the  owners  of  natural  resources  and 
forbids  further  taxes  on  same. 

Property  Tax. 

In  the  case  of  De  Moss  v.  Sample  et  al,  143  La.  243,  it  was 
said  by  way  of  obiter  that  in  Louisiana,  while  it  has  been  the 
custom  to  tax  real  estate  as  a  unit,  that  the  different  elements 
of  the  land  are  capable  of  being  severed  and  separatly  taxed. 

In  Marston  v.  Elliott,  Sheriff,  et  al,  138  La.  574,  it  was 
stated  that  in  making  an  assessment  the  whole  value  of  the 
land  shall  be  placed  together  on  the  tax  rolls,  oil,  agriculture 
and  all  other  purposes  instead  of  assessing  the  agricultural 
value  in  one  place  and  the  oil  in  another. 

In  Palmer  Co.,  Inc.,  et  al  v.  Police  Jury  of  Red  River  Parish 
et  al,  142  La.  1076,  it  was  held  that  where  to  the  agriculture 


TAXATION  135 

value  of  land,  the  oil  value  is  added,  it  does  not  constitute  a 
separate  assessment  of  the  mineral  oil ;  and  the  property  owner 
who  fails  to  render  a  return  of  the  oil  value  of  his  land  cannot 
complain  over  the  action  of  the  board  of  reviewers  in  respect 
to  its  assessment.  (In  that  case,  the  method  of  assessment 
employed  by  the  Sheriff  was  to  ascertain  from  the  Conserva- 
tion Commission  the  quantity  of  oil  produced  and  take  that  as 
a  basis  for  his  calculations  in  adding  the  oil  value  to  the  agri- 
cultural value.  His  method  it  appears  was  to  add  60  cents 
value  for  each  barrel  of  oil  produced  during  the  first  quarter 
of  the  year,  and  no  objection  was  made  to  this  method.  In 
the  same  case,  the  license  tax  act  296  of  1914,  based  on  Act 
229  of  the  Constitution  of  1913,  was  upheld.) 

The  Constitution  of  1921  also  forbids  adding  the  value  of 
of!  and  gas  to  the  assessment  of  lands,  but  leaves  in  effect  all 
existing  laws  until  the  legislature  acts. 

In  Hayne  et  al  v.  Assessor  et  al,  143  La.  697,  some  interest- 
ing questions  were  raised  relative  to  the  assessment  of  min- 
erals, but  the  case  went  off  on  another  point. 

Act  276  of  1908,  amending  127  of  1898,  as  amended  by  19 
of  1900,  provides: 

"That  all***Corporations,  etc.,***chartere  or  created  by 
the  laws  of  other  States  or  foreign  countries  who  may  engage 
in  their  own  name  or  in  the  name  of  their  representatives  or 
agents  in  this  state  in  the  sale  of  coal  oil,  petroleum,  naphtha, 
benzine,  turpentine,  or  other  mineral  oil,  whether  crude  or  re- 
fined, shall  pay  an  annual  license  of  seven  dollars  for  each  one 
thousand  dollars  of  such  sales. 

And  in  the  City  of  Shreveport  v.  Pierce  Oil  Corp.,  141  La. 
372,  it  was  held  that : 


136  GAS 

A  corporation  (whether  foreign  or  local)  selling  at  whole- 
sale and  retail  the  various  products  of  crude  and  refined  oil 
is  liable  for  license  tax  of  the  city  of  Shreveport  (and  other 
cities). 

Corporation  taxes  are  referred  to  elsewhere.  Also  Act  9 
of  E.  S.  1917,  subjecting  rolling  stock  (including  tank  cars) 
to  a  tax,  which  latter  act  was  passed  upon  in  Constantine  Re- 
fining Co.  v.  Day,  147  La.  623;  Same  v.  Aicand,  147  La.  634. 

That  there  is  only  one  firm  in  the  State  engaged  in  the 
production  of  sulphur,  does  not  render  a  severance  tax  invalid 
(Act  145  of  1916)  Vinton  Sulphur  Co.  v.  Reed,  249  Fed.  172. 

By  the  Constitution  of  1921,  gas  pipe  lines,  etc.,  constructed 
after  the  adoption  of  the  Constitution  and  prior  to  January  1, 
1926,  supplying  natural  gas  for  fuel  and  light  purposes  to 
cities  and  towns  not  already  supplied  with  natural  gas  are  ex- 
empted from  taxation  for  ten  years. 

By  Act  81  of  1921  a  license  tax  of  one  cent  a  gallon  is  levied 
on  all  gasoline  or  motor  fuel  sold  in  the  state,  to  be  paid  by 
the  producers,  refineries,  importers  and  dealers.  See  Appen- 
dix. 

Act  231  of  1921  provides  for  inspection  and  supervision  fees 
to  be  paid  by  all  common  carriers  and  all  public  utilities  under 
the  supervision  of  the  Louisiana  Public  Service  Commission. 
The  minimum  is  $80.00  and  maximum  $500.00,  and  the 
amount  is  based  upon  the  gross  receipts  in  excess  of  $5,000.00. 

Sec.  73.  Gas — Rights  and  Liabilities  connection 
with  use  and  production. 

There  is  nothing  intrinsicly  dangerous  in  constructing  a 
gas  pipe  line.  Cole  v.  La.  Gas  Co.  and  Ford  v.  Same,  121  La. 


GAS  137 

771.  These  cases  involved  the  following  facts:  A  piece  of 
pipe  was  being  taken  from  a  line  and  another  piece  substi- 
tuted. It  was  necessary  to  heat  and  bend  the  pipe.  A  fire 
was  built  for  that  purpose  and  workmen  were  sent  in  each 
direction  to  shut  off  the  gas,  but  when  the  section  was  re- 
moved the  gas  was  ignited  by  the  fire  and  a  workman  was 
burned  to  death.  While  the  Court  intimated  that  the  pres- 
ence of  the  fire  constituted  negligence,  the  case  merely  de- 
cided that  an  independent  contractor  who  was  in  charge  of  the 
work  would  be  the  person  responsible  and  not  the  company 
employing  the  contractor. 

A  gas  company  is  responsible  for  the  condition  of  the  sup- 
ply pipe  to  the  meter,  and  the  property  owner  is  responsible 
for  the  pipe  from  the  meter  to  the  house,  and  where  gas  form 
such  pipe  leaks  and  explodes,  injuring  a  passerby,  the  com- 
pany and  consumer  are  liable  in  solido  for  damages.  Wolff 
v.  Shreveport  Gas  £  E.  Lt.  &  Pr.  Co.,  138  La.  743. 

Conceding,  however,  that  the  service  pipe  belongs  to  the 
owner  of  the  house,  and  the  gas  company  should  not  be  held 
responsible  for  a  severance  of  the  pipe  without  its  knowledge, 
the  gas  turned  into  the  pipe  belongs  to  the  company  and  when 
the  gas  turned  into  the  pipe  does  not  go  through  the  meter  it 
is  as  much  the  duty  of  the  company  to  cut  off  the  gas  until  it 
can  find  where  it  is  going  as  it  is  the  duty  of  the  owner  of 
a  wild  animal  to  search  for  it  when  it  escapes,  although  the 
advantage  is  with  the  gas  company,  which  need  only  turn 
off  a  cook  to  arrest  the  escape  of  the  dangerous  agency.  And 
it  is  not  contributory  negligence  for  one  who  hears  a  noise 
like  leaking  water  to  go  under  his  house  to  investigate  and 
light  a  match,  where  escaping  gas  is  odorless,  the  Court  taking 
notice  of  the  odorless  character  of  natural  gas  from  the  Caddo 
field.  Hahn  v.  Southwestern  Gas  Co.,  145  La.  212. 


138  GAS 

In  Bradley  v.  Shreveport  Gas  E.  Lt.  &  Pr.  Co  et  al,  142  La. 
49.  the  Court  held  that : 

"It  was  negligence  for  a  gas  company  to  open  an  outlet  in 
a  gas  pipe  to  allow  the  gas  pressure  to  blow  out  the  obstruc- 
tions in  the  pipe  and  thereby  liberate  in  a  partly  closed  shed 
highly  combustible  and  explosive  gas  when  mixed  with  air 
unless  this  was  unavoidably  necessary  and  was  accompanied 
by  every  reasonable  precaution  for  guarding  against  the  dan- 
ger thus  created. 

"That  this  was  not  unavoidably  necessary  was  conclusively 
shown  by  the  fact  that  the  gas  company  could  have  installed 
and  shortly  after  the  explosion  did  install  an  apparatus  of 
which  it  knew,  and  which  it  had  not  installed  sooner  merely 
to  save  expenses,  and  by  testimony  that  a  pipe  could  have  been 
adapted  to  the  outlet  for  conducting  the  gas  out  of  the  shed 
to  be  harmlessly  diffused  in  the  open  air." 

"In  an  action  for  death  caused  by  explosion  of  gas  which 
defendant's  workman  was  allowing  to  escape  from  a  gas  pipe, 
plaintiff  was  not  required  to  show  how  the  gas  became 
ignited." 

"The  liberation  of  a  large  quantity  of  natural  gas,  which 
was  highly  combumstible  or  explosive  when  mixed  with  air, 
in  a  partly  closed  shed  without  taking  any  precautions  against 
its  becoming  ignited,  was  negligence  and  one  of  the  concurrent 
and  co-operating  causes  of  an  inquiry  caused  by  an  explosion, 
and  rendered  the  gas  company  liable  no  matter  how  the  igni- 
tion was  brought  about,  unless  the  injured  person  was  himself 
responsible  therefor  and  contributed  by  his  negligence  to  the 
ignition. 

"The  burden  was  upon  the  gas  company  to  show  that  the 
injured  person  by  his  negligence  contributed  to  the  ignition  of 
the  gas." 

See  also  Rohr  v.  New  Orleans  Gaslight  Co.,  136  La.  546. 

There  rests  upon  the  owner  of  a  natural  gas  pipe  line  pass- 
ing through  a  place  used  as  a  public  highway  in  an  inhabited 


GAS  139 

place,  the  obligation  to  exercise  vigilance  commensurate  with 
the  danger  and  of  a  character  to  protect  the  public  in  person 
and  property  from  injury  and  destruction;  and  where  a  leak 
has  existed  for  five  months  and  escaping  gas  could  be  heard 
and  was  ignited  and  the  owner  of  the  line  did  not  hear  of  the 
leak  until  after  a  child  was  injured,  the  inspection  of  the  line 
was  perfunctory  and  inefficient,  and  such  owner  was  negli- 
gent in  not  discovering  the  leak  sooner  and  was  liable  to  the 
same  extent  as  if  the  leak  had  been  discovered  and  not  stop- 
ped; and  where,  under  such  conditions,  young  children  are 
attracted  by  the  gas  and  ignite  it  and  are  burned,  the  proxi- 
mate cause  is  the  negligence  of  the  gas  company  which  is  liable 
in  damages.  Jackson  v.  Texas  Co.,  143  La.  21. 

Taxpayers  have  no  standing  in  court  to  contest  an  ordi- 
nance of  the  city  council  granting  a  right  to  a  gas  company 
to  lay  pipes,  etc.,  on  the  ground  that  it  violates  the  vested 
rights  of  another  company  that  has  been  granted  a  franchise 
and  in  which  they  have  no  interest.  There  must  be  an  actual 
and  real  injury  to  the  property  owners  property  rights  before 
they  have  an  interest.  Morris  v.  Municipal  Gas  Co.,  121  La. 
1916. 

The  supply  of  gas  to  consumers  generally  being  a  business 
of  a  public  nature,  it  is  competent  for  the  legislature,  subject 
to  constitutional  restrictions,  to  grant  the  use  of  streets  and 
public  highways  for  this  purpose.  New  Orleans  Gas  Light 
Co.  v.  La.  Light,  etc.  Co.,  115  U.  S.  650,  6  S.  Ct.  252,  19  L. 
Ed.  516. 

A  company  which  is  granted  authority  to  lay  mains  and 
pipes  in  the  streets  without  any  particular  streets  or  particular 
parts  of  streets  being  designated  does  not  thereby  acquire  any 
vested  right  to  occupy  any  particular  part  of  the  streets,  but 
takes  the  risk  of  location  and  may  be  requiired  to  make  such 


140  GAS 

changes  as  public  convenience  or  security  requires,  and  this 
as  its  own  expense.  New  Orleans  Gas  Light  Co.  v.  New 
Orleans  Drainage  Comn.,  Ill  La.  838,35  So.  929.  It  has  a 
property  right  however  in  its  pipes,  etc.,  in  the  streets. 

Act  94  of  1921,  gives  municipalities  of  over  100.000  popula- 
tion the  right  to  grant  indeterminate  permits  to  use  the  streets 
for  gas  mains,  ets.,  under  certain  conditions. 

A  gas  company,  in  return  for  the  right  of  laying  its  mains 
and  pipes  in  public  streets,  assumes  the  duty  to  furnish  gas 
to  all  persons  who  have  made  the  necessary  arrangements  to 
receive  it  and  applied  therefor,  and  who  pay  or  offer  to  pay 
the  price  and  abide  by  all  the  reasonable  rules  and  regulations 
of  the  company.  State  v.  New  Orleans  Gas  Light  Co.,  108 
La.  67,  32  So.  179;  New  Orleans  Gas  Co.  v.  Paulding,  12  Rob. 
388. 

A  gas  company  has  no  right  to  require  the  owner  or  occu- 
pant of  a  building  to  pay  arrearages  due  by  former  owner  or 
occupant,  as  a  condition  to  a  further  supply  of  gas.  New 
Orleans  Gas  Co.  v.  Paulding,  12  Rob.  378. 

And  an  agreement  to  pay  arrearages  of  a  predicessor,  under 
threats,  is  invalid.  N.  O.  Gas  Light  Co.  v.  Paulding,  12  Rob. 
378. 

A  city  ordinance,  which  is  the  contract  between  the  gas 
company  and  the  city,  fixing  the  terms  upon  which  the  cor- 
poration shall  supply  the  citizens,  will  be  enforced  by  the 
courts  in  favor  of  the  inhabitants  of  the  city,  and  where  such 
an  ordinance  classifies  the  different  kinds  of  consumers  as 
"domestic,"  "manufacturers"  and  "public  institutions,"  the 
courts  will  decide  in  which  classification  a  consumer  falls. 
Henderson  v.  Shreveport  Gas,  E.  Lt.  &  Pr.  Co.,  134  La.  39. 


CORPORATIONS  141 

A  gas  company  cannot  exercise  judicial  powers  and  decide 
claims  in  its  own  favor.  State  v.  N.  O.  Lighting  Co.,  2.  Or. 
Ap.  269.  It  may  exercise  reasonable  regulations,  but  must 
regard  the  rights  of  others  and  cannot  cut  off  the  gas  supply 
because  of  alleged  damage  to  meter  not  shown  to  be  through 
the  fault  of  the  customer  because  of  his  refusal  to  pay  for 
same. 

Manufacturers  of  artificial  gas  were  held  not  liable  for 
license  under  Act  171  of  1898.  State  v.  N.  O.  Lighting  Co., 
118  La.  440. 

Act  No.  259  of  1916  amends  and  re-enacts  Act  100  of  1898, 
so  as  to  authorize  gas  companies  to  consolidate  with  other 
companies  by  sale  or  lease,  and  to  issue  bonds,  etc. 

Act  37  of  E.  S.  of  1917  makes  it  a  felony  to- damage,  injure 
or  render  unavailable,  or  attempt  to  do  so,  any  gas  plant,  or 
to  interfere  with  the  transportation  of  the  product  thereof. 
\Yhile  Act  208  of  1916  and  Act  63  of  1921  makes  it  a  mis- 
demeanor to  divert  gas  from  pipes,  mains,  etc.,  or  to  break  or 
alter  any  gas  meter.  Act  154  of  1918  makes  it  a  misdemean- 
or to  steal  or  remove  maliciously  any  gas  fixture  from  any 
dwelling  or  building,  and  the  possession  of  any  fixture  so  re- 
moved shall  be  prima  facie  evidence  of  a  violation  of  the  act. 

Sec.  74.   Corporations. 

Oil  companies  in  Louisiana  are  organized  under  the  general 
corporation  law  (Act  267  of  1914),  a  summary  of  which  fol- 
lows : 

Corporations  are  formed  by  three  or  more  natural  persons, 
but  where  there  are  only  three,  two  of  such  number  cannot 
be  husband  and  wife. 


142  CORPORATIONS 

A  charter  or  articles  of  Incorporation  must  be  prepared, 
which  must  contain:  The  name  of  the  corporation  (which 
cannot  be  similar  to  any  other  in  the  state,  and  which  must 
be  followed  by  the  word  "Incorporated,"  or  the  abbreviation, 
"Inc.");  the  purposes  for  which  formed;  the  amount  of  the 
capital  stock  and  kind  of  stock ;  the  amount  to  which  the  capi- 
tal may  be  increased;  the  number  of  shares  and  par  value; 
the  location  of  the  domicile,  which  must  be  within  the  State; 
the  period  of  duration;  the  number  of  directors  (which  shall 
be  not  less  than  three)  and  their  addresses;  the  names  and 
addresses  of  subscribers  and  a  description  of  all  property  and 
services  given  for  stock. 

The  charter  is  executed  before  a  Notary  Public  and  pub- 
lished for  thirty  days  and  it  is  recorded  in  the  Parish.  A  cer- 
tified copy  is  sent  to  the  Secretary  of  State  who  issues  a  cer- 
tificate of  Incorporation  taking  effect  from  the  date  of  the 
charter,  which  certificate,  or  a  certified  copy,  is  prima  facie 
evidence  of  the  legal  creation  and  existence  of  the  corpora- 
tion. 

The  capital  stock,  cannot  be  less  than  $5,000.00,  and  50  per 
cent  of  the  capital  stock  must  be  subscribed  at  the  time  of  in- 
corporation and  50  per  cent  of  all  stock  subscribed  must  be  ac- 
tually paid  in  before  the  corporation  commences  business  and 
the  remainder  within  twelve  months  under  penalty  of  dissolu- 
tion. Until  all  subscriptions  are  paid  the  corporation  shall 
not  incur  obligations  greater  than  the  amount  paid  and  there- 
after shall  not  incur  unsecured  liabilities  greater  than  twice 
the  amount  of  its  fully  paid  up  capital  and  surplus.  Until  all 
stock  is  subscribed  and  paid  for,  the  corporation  is  obliged  to 
make  semi-annual  sworn  reports  to  the  Secretary  of  State 
showing  the  amount  subscribed. 


CORPORATIONS  143 

Where  property  or  good  will  is  given  for  stock,  an  itemized 
description  must  be  attached  to  the  charter  with  an  appraisal 
of  the  Directors.  If  given  after  incorporation,  such  statement 
and  appraisal  shall  be  filed  with  the  Clerk  of  Court  and  Sec- 
retary of  State.  The  right  to  contest  excessive  values  so  placed 
on  property  prescribes  in  five  years.  And  no  stock  or  bonds 
shall  be  issued  except  for  labor  done  on  property  or  money 
actually  received,  and  fictitious  issues  of  stock  are  void  and 
the  corporation  liable  for  forfeiture  of  its  charter. 

Different  classes  of  stock  may  be  issued  with  different 
privileges,  restrictions  and  voting  power. 

By  written  consent,  directors  meetings  may  be  held  out  of 
the  State  and  at  other  places  than  the  domicile  of  the  corpora- 
tion. 

Corporations  may  hold  stock  in  other  Corporations,  but  one 
Corporation  cannot  vote  more  than  10  per  cent  of  the  stock 
of  another  Corporation. 

Stockholders  are  not  liable  for  the  debts  or  faults  of  the 
Corporation  for  more  than  the  unpaid  balance  due  on  stock, 
but  Directors  are  personally  liable  for  certain  illegal  acts  and 
omissions. 

The  Courts  have  jurisdiction  over  the  acts  of  the  offices 
of  the  Corporations  to  compel  them  to  conduct  conscientious- 
ly the  affairs  of  the  corporation  in  certain  cases  where  they 
fail  to  account  for  funds,  to  suspend  officers  who  abuse  their 
trust,  to  regulate  salaries  and  compensation  in  certain  in- 
stances, to  remove  officers  for  gross  misconduct,  to  direct 
elections  to  supply  vacancies  of  officers  removed,  to  prevent 
fraudulent  alienations,  and  certain  creditors  and  stockholders 
may  also  invoke  there  remedies. 


144  CORPORATIONS 

Amendments  of  charter  and  liquidation  of  Corporations  is 
provided  for  in  the  statute. 

Annual  reports  must  be  made  to  the  Secretary  of  State  rela- 
tive to  the  amount  of  stock,  names  and  addresses  of  officers, 
etc.  And  corporations  operating  public  utilities,  except  those 
reporting  to  the  Railroad  Commission,  shall  also  furnish 
additional  information.  (See  State  ex  rel.  Atty.  General  v. 
Vivian  Gas  Oil  &  Pipe  Line  Co.,  147  La.  701.) 

An  incorporation  tax  of  1-20  of  1  per  cent  (minimum 
$10.00),  is  levied  on  new  corporations. 

Foreign  corporations  are  given  the  same  rights,  powers 
and  privileges  as  domestic  corporations  upon  filing  with  the 
secretary  of  State  copies  of  articles  of  Incorporation  and  Cer- 
tificate of  Incorporation  and  subsequent  amendments  thereto, 
and  all  corporations  that  establish  an  office  or  appoint  a  resi- 
dent agent  in  Louisiana  without  so  qualifying  shall  be  guilty 
of  a  misdemeanor. 

The  manner  of  service  of  legal  process  on  local  and  foreign 
corporations  is  fully  provided  by  statute. 

Transfers  of  stock,  etc.,  are  fully  covered  by  a  uniform 
stock  transfer  Act  (No.  180  of  1910.)  See  Crichton  v.  La. 
Oil  Ref.  Co.,  144  La.  649. 

In  Van  Vleet  v.  Evangeline  Oil  Co.,  129  La.  406,  it  was 
said  that  where  oil  wells  represent  part  of  the  capital  stock 
of  a  corporation  and  produce  oil,  the  proceeds  may  be  dis- 
tributed as  dividends  without  having  to  set  aside  funds  to  re- 
place the  production,  but  where  a  stock  of  oil  already  pro- 
duced is  part  of  the  capital,  the  proceeds  of  its  sale  should 
not  be  used  as  dividends,  and  the  case  discusses  the  general 
principles  relative  to  payment  of  dividends. 


CORPORATIONS  145 

Prior  to  the  passage  of  Act  267  of  1914,  oil  and  pipe  line 
companies  were  incorporated  under  Revised  Statutes  683,  as 
amended  by  Act  154  of  1902,  but  the  general  corporation  act 
repealed  these  statutes. 

In  Crucel  v.  Houssiere-Latreille,  122  La.  913,  the  principle 
of  ratification  of  the  acts  of  corporation  agents  are  discussed. 

A  transaction  by  which  one  who  was  treasurer  and  field 
manager  of  an  oil  corporation  charged  with  looking  after  its 
affairs  of  such  character,  received  $8,000.00  worth  of  bonds 
from  the  corporation  for  property,  which  shortly  prior  to  the 
sale  to  the  Corporation,  he  had  acquired  for  only  $200.00,  was 
fraudulent.  Parks  v.  Hughes,  145  La.  221. 

Keimer  v.  Southwestern  Oil  Co.,  113  La.  80  involves  the 
right  of  oil  company  to  discharge  employes  for  disobedience. 

Where  an  oil  company  has  drilled  some  wells  and  has  mere- 
ly closed  operations  temporarily,  the  property  cannot  be  said 
to  be  "abandoned"  so  as  to  justify  a  receivership.  Wilkins 
et  al.  v.  Penn.  La.  Oil  &  Gas  Co.,  Inc.,  149  La. 

There  are  many  other  cases  wherein  oil  companies  were 
parties,  which  pass  upon  various  phases  of  corporate  practice 
and  which  it  would  serve  no  useful  purpose  to  review.  We  list 
however,  some  of  the  most  important :  Receiverships :  Van- 
Vleet  v.  Angeline  Oil  Co.,  127  La.  919;  133  La.  72;  Oil  City 
Iron  Wks.  v.  Pelican  Oil  Co.,  115  La.  265;  Winterhaler  v. 
Hoffmamn,  119  La.  125;  S.  M.  Jones  Co.  v.  Home  Oil  & 
Dev.  Co.,  124  La.  148;  Receivership  of  Cotton  Queen  Oil 
Co.  143  La.  2  (shares  should  not  be  issues  at  less  than  par.} 
Stock  Transaction:  Vinton  Oil  &  Sulphur  Co.,  v.  Park,  115 
La.  800.  Cooper  v.  Jennings  Refining  Co.,  i!8  La.  181; 
Smith  v.  Shippers  Oil  Co.,  120  La.  640;  S.  M.  Jones  Co.  v. 
Hoffman  et  al,  114  La.  996;  Webster  v.  Harnon,  148  La. 
1080;  Atkins  v.  Garnett,  270  Fed  942.  Officers  and  Agents; 
Hutter  v.  Indian  Oil  Ref.  Co.  134  La.  578;  Crusel  v.  Hous- 
siere-Latrellis  Oil  Co.,  122  La.  913.  Stipulation  pour  auturi; 


146  BLUE    SKY   LAW 

Miller  et  al.  v.  Crusel,  135  La.  649.  Guaranty  of  accounts 
Continental  Supply  Co.  v.  Tucker  Rose  Oil  Co.,  146  La.  871. 
Building  leases:  Dreyfus  v.  Process  Oil  Co.,  142  La.  564; 
Richardson  v.  Liberty  Oil  Co.,  143  La.  130. 

Sec.  75.  Blue  Sky  Law. 

Act  177  of  1920,  known  as  the  "Blue  Sky  Law,"  is  de- 
signed to  prevent  fraud  in  the  sale  of  stocks  and  bonds.  It 
creates  a  "Securities  Commission." 

It  provides  that  every  person,  corporation,  partnership, 
etc.,  organized  in  the  State  or  any  other  State,  which  shall 
engage  in  the  business  of  selling  or  negotiating  for  the  sale 
of  any  stocks  or  bonds,  or  securities  in  Louisiana,  by  adver- 
tising the  same  or  otherwise,  shall  be  deemed  a  "dealer"  and 
shall  register  with  the  Commission  giving  name  and  address, 
character  of  the  securities  and  places  where  business  will  be 
conducted  and  names  and  addresses  of  agents.  Such  dealers 
shall  pay  an  annual  $25.00  license  fee.  All  agents  are  re- 
quired to  register  and  obtain  a  license  and  pay  a  fee. 

Before  any  stock  can  be  sold  or  offered,  the  dealer  shall 
file  with  the  Commission  a  sworn  statement  showing:  A  de- 
scription and  amount  of  securities  offered  for  sale ;  a  certified 
copy  of  charter  and  by-laws;  or  certified  copy  of  agreement 
of  partnership,  trust,  etc.,  names  and  addresses  and  occupa- 
tions of  the  officers  for  a  period  of  ten  years ;  a  description  of 
the  industry  to  be  engaged  in  and  when  it  will  be  established ; 
an  inventory  and  appraisement  of  assets;  statement  of  gross 
income  and  expenses;  copy  of  mortgage,  etc.,  securing  the 
securities;  copy  of  form  of  security  to  be  issued;  copy  of  bal- 
ance sheet;  copy  of  subscription  blanks,  statement  showing 
manner  in  which  securities  are  to  be  offered  and  sold,  etc. 

A  filing  fee  of  1-10  of  1  per  cent  of  the  face  value  of  the 


TRUSTS  147 

securities  is  required,  with  a  minimum  of  $25.00  and  maxi- 
mum of  $200.00. 

The  Commission  may  inspect  books  and  interrogate  wit- 
nesses. 

Approval  of  securities  is  shown  by  a  permit  or  license  and 
an  appeal  to  the  Courts  may  be  had. 

Penalties  are  provided  for  failure  to  comply  with  the  pro- 
visions of  the  Act,  for  false  statements  in  connection  with  the 
sale  of  securities,  for  false  statements  made  to  the  Commis- 
sion, etc. 

Foreign  companies  are  also  required  to  file  an  irrevocable 
written  consent  to  be  sued  in  this  state. 

Sec.   76.  Trusts. 

Common  law  trusts  are  unknown  in  Louisiana.  Gates  v. 
Renfroe,  7  A.  769;  Partee  v.  Succession  of  Hill;  12  A.  767. 
And  they  were  intended  to  be  prohibited  by  the  provisions  of 
the  Civil  Code  against  fidei  commissa.  Partee  v.  Succession 
of  Hill,  12  A.  767;  Perrin  v.  McMicken's  Heirs,  15  A.  154; 
Marks  v.  Lowenburg,  143  La.  196. 

And  there  is  no  adequate  statutory  provision  under  which 
thev  could  be  interpreted,  and  due  to  the  constitution  inhibi- 
tion against  the  adoption  of  foreign  systems  of  law,  the  courts 
could  not  indirectly  engraft  the  whole  common  law  of  trusts 
into  the  Louisiana  law.  Succession  of  Franklin,  7  A.  395. 

There  seems,  however,  to  be  nothing  against  a  naked  trust 
where  property  is  placed  in  the  name  of  another,  merly  to 
be  held.  Malone  v.  Barker,  2  Rob.  369;  Caldwell  v.  Hennen, 
5  Rob.  20;  Hope  v.  State  Bank,  4  A  213;  Succession  of  Coch- 
rane,  29  A.  232. 


148  PARTNERSHIPS 

An  agreement  designating  a  party  as  "trustee"  to  hold  cer- 
tain oil  property  during  a  suit  was  construed  in  Rains  v.  Dun- 
son  (In  re  Bernstein),  145  La.  1011,  as  a  conventional  se- 
questration, and  the  provisions  of  the  Civil  Code  were  applied 
in  interpreting  it. 

Until  the  Legislature  acts  on  this  subject,  the  benefits  flow- 
ing from  the  creation  of  trusts  must  be  foregone,  or  some 
other  form  of  legal  association  resorted  to. 

See  Act  72  of  1918  relative  to  donations  for  charitable 
purposes  and  Act  107  of  1920  relative  to  trustees  for  dona- 
tions mortis  causa  and  inter  vivos. 

Sec.  77.  Partnerships. 

Partnerships  entered  into  for  the  purpose  of  engaging  in 
the  oil  and  gas  business  are  subject  only  to  the  general  laws 
relating  to  partnerships. 

Hamman  v.  Emerson  et  al,  135  La.  629,  was  a  suit  to  dis- 
solve a  partnership  and  to  have  the  defendant's  interest  in  a 
corporation  declared  to  be  the  property  of  the  partnership. 
The  plaintiff  and  defendant  had  an  agreement  whereby  the 
plaintiff  furnished  the  defendant  money  for  expenses  in  buy- 
ing leases  which  they  owned  in  indivision  and  defendant 
agreed  to  devote  all  of  his  time  to  the  business.  The  Court 
held  on  the  facts  submitted  that  the  partnership  had  been  ter- 
minated, and  that  defendant  was  not  prevented  from  joining 
a  corporation  where  it  took  no  part  of  his  time  and  did  not 
interfere  with  the  partnership  business. 

Partners  in  oil  development  are  subject  to  an  accounting. 
Crusel  v.  Brooks,  133  La.  477. 

Where  parties  acquire  oil  and  gas  leases  in  common  and 
there  is  no  agreement  to  hold  the  same  in  indivision  for  any 
duration,  neither  is  precluded  from  an  action  for  partition. 
Connett  v.  Wright,  149  La 


STATUTES— CANCELLATION  OF  LEASES  149 

APPENDIX  "A" 

Statutes,  etc. 

Cancellation  of  Leases. 

ACT  No.  168  of  1920. 

House  Bill  No.  70.  By  Mr.  Wilkinson. 

AN  ACT. 

To  require  lessees  under  optional  oil  and  gas  leases  to  fur- 
nish to  their  lessors  cancellation  of  such  leases  at  the  termina- 
tion of  any  of  the  options  therein  provided,  to  grant  to  lessors 
in  case  of  failure  therein  a  right  of  action  against  such  lessees, 
and  to  provide  penalties  for  violation  of  this  act. 

Section  1.  Be  it  enacted  by  the  General  Assembly  of  the 
State  of  Louisiana,  that  whenever,  by  reason  of  the  termina- 
tion of  the  full  period  within  which  an  optional  oil  and  gas 
lease  may  be  kept  alive  by  the  payment  of  rentals,  or  at  the 
termination  of  any  of  the  options  in  such  lease  by  reason  of 
failure  on  the  part  of  the  lessee  to  comply  with  the  condition 
therein  for  the  prevention  of  forfeiture,  such  lease  shall  lapse, 
the  lessee  shall  within  ten  days  after  written  demand  on  the 
part  of  the  lessor  furnish  the  lessor  with  an  instrument,  duly 
acknowledged,  directing  the  cancellation  of  such  lease  on  the 
records. 

Section  2.  Be  it  further  enacted,  etc.,  That  if  any  lessee, 
having  been  given  written  notice  demanding  cancellation  of 
such  lease,  shall  fail  or  refuse  to  supply  the  same  within  ten 
days  he  shall  be  liable  to  lessor  for  a  reasonable  attorney's 


150  STATUTES— PROCEDURE 

fees  incurred  by  the  lessor  in  bringing  suit  to  have  such  for- 
feiture or  cancellation  adjudged,  and  in  addition  thereto  shall 
be  liable  to  the  lessor  for  all  damages  suffered  by  the  lessor 
by  reason  of  his  inability  to  make  any  lease  on  account  of  the 
first  lease  not  having  been  cancelled. 

R.  F.  WALKER, 
Speaker  of  the  House  of  Representatives. 

HEWITT  BOUANCHAUD, 
Lieutenant  Governor  and  President  of  the  Senate. 

Approved:  July  8,  1920. 

JNO.  M.  PARKER, 
Governor  of  the  State  of  Louisiana. 
A  true  copy : 

JAMES  J.  BAILEY, 

Secretary  of  State. 

Procedure  in  Oil  and  Gas  Cases. 

ACT  No.  60  of  1920. 

House  Bill  92.  By  Mr.  Tanner. 

AN  ACT. 

Providing  for  the  summary  trial  of  suits  at  law  in  which 
the  title  to  mineral  lands,  or  oil,  gas  and  mineral  leases,  is 
in  controversy;  provided  that  plaintiff,  on  giving  bond  with 
proper  security  to  indemnify  defendant  for  any  loss  which 
might  be  occasioned  him  on  account  of  such  suit,  may  have 
said  suit  placed  on  ordinary  docket  of  court  in  which  said  suit 
is  pending;  providing  for  continuances,  and  giving  appeals 
from  judgment  of  trial  courts  in  such  suits  preference  in  the 
appellate  courts. 

Section  1.     Be  it  enacted  by  the  General  Assembly  of  the 


STATUTES— PROCEDURE  151 

State  of  Louisiana  that  whenever  a  suit  is  filed  in  which  the 
title  to  or  possession  of  mineral  lands,  or  oil,  gas  or  mineral 
leases,  is  questioned,  the  defendant  shall  have  the  right  to 
demand  a  summary  trial  of  the  said  cause  provided  that  on 
such  demand  being  made  by  the  defendant  the  plaintiff  may 
have  said  cause  retained,  on  the  ordinary  docket  of  the  court 
having  jurisdiction  thereof,  by  giving  bond  sufficient  to  in- 
demnify the  Defendant  against  any  loss  resulting  from  said 
suit  in  the  event  same  is  decided  adversely  to  plaintiff. 

Section  2.  Be  it  further  enacted,  etc.,  That  on  or  before  ten 
days  after  the  date  of  filing  of  said  suit,  defendant  shall  file 
his  answer  to  plaintiff's  demand,  and  after  the  answer  is  filed, 
or  as  a  part  thereof,  defendant  may  file  a  motion  for  a  sum- 
mary trial  of  said  cause.  Upon  the  filing  of  said  motion,  the 
judge  shall  sign  an  order  fixing  the  case  for  trial  by  prefer- 
ence in  not  less  than  five  days,  nor  more  than  ten  days,  from 
date  of  such  filing. 

Section  3.  Be  it  further  enacted,  etc.,  That  should  plaintiff 
show  a  legal  cause  for  delay  of  such  trial,  only  one  continu- 
ance shall  be  granted,  and  that  for  not  more  than  ten  days. 

Section  4.  Be  it  further  enacted,  etc.,  That  48  hours  or 
more  before  the  cause  is  called  for  trial,  plaintiff  may  place 
said  cause  back  in  the  category  of  ordinary  causes,  and  not 
subject  to  any  preference  or  priority  by  giving  bond  with  good 
and  sufficient  security  in  an  amount  sufficient  to  indemnify 
the  defendant  or  defendants,  against  any  loss  which  might 
result  in  the  event  said  suit  is  decided  adversely  to  plaintiff, 
which  said  bond  shall  be  fixed  by  the  court  after  a  summary 
hearing  on  a  rule  filed  by  plaintiff  and  served  on  defendant. 

That,  in  fixing  the  amount  of  such  bond,  the  court  shall 
consider  all  the  circumstances  that  may  affect  the  particular 


152  STATUTES— PROCEDURE 

property,  on  business  in  contestation,  including  probable  loss 
arising  from  the  unsalability  of  the  property  at  time  of  final 
judgment,  the  stopping  of  development,  the  hindering  or  re- 
tarding of  development,  refusal  of  the  purchaser  to  pay  fur 
the  product  until  the  title  is  settled,  the  requirements  of  the 
lease  as  to  development,  or  any  loss  of  whatsoever  nature 
which  may  be  caused  by  the  filing  of  said  suit. 

That  upon  fixing  the  amount  of  such  bond,  the  plaintift 
shall,  within  twenty-four  hours  thereafter  file  his  bond,  with 
full,  valid  and  sufficient  security  and  approved  by  the  court, 
in  favor  of  the  Clerk  of  Court,  and  the  conditions  of  such 
obligation  shall  be  to  well  and  fully  pay  the  defendant  any  and 
all  damages  he  may  sustain,  by  reason  of  the  filing  of  said 
suit,  together  with  all  costs  of  court  in  the  event  the  court 
should  decide  the  case  contrary  to  the  demands  of  the  plain- 
tiff. 

Should  the  plaintiff  fail  to  file  such  bond,  the  court,  shall, 
upon  motion  of  defendant,  render  judgment  in  favor  of  the 
defendant  and  rejecting  plaintiff's  demands  in  toto. 

Section  5.  Be  it  further  enacted,  etc.,  That  should  either 
party  appeal  a  case  so  fixed  for  summary  trial,  said  cause 
shall  be  a  preference  suit  in  the  appellate  court  and  shall  be 
fixed  and  set  for  argument  in  said  appellate  court  for  a  date 
not  more  than  thirty  days  from  the  date  of  the  filing  of  the 
transcript  in  said  cause. 

Section  6.  Be  it  further  enacted,  etc.,  That  should  the 
court  be  in  vacation  at  the  time  of  filing  said  suit,  the  cause 
shall  be  fixed  for  trial  in  first  instance  on  the  first  day  of  the 
next  term  of  court. 

Section  7.    Be  it  further  enacted,  etc.,  That  all  laws  or  parts 


STATUTES— SEVERANCE  TAX  153 

of  laws  in  conflict  herewith  be,  and  the  same  are,  hereby  re- 
pealed. 

R.  F.  WALKER, 
Speaker  of  the  House  of  Representatives. 

HEWITT  BOUANCHAUD, 

Lieutenant  Governor  and  President  of  the  Senate. 

Approved:  July  6,  1920. 

JNO.  M.  PARKER, 
Governor  of  the  State  of  Louisiana. 
A  true  copy: 

JAMES  J.  BAILEY, 

Secretary  of  State. 

Severance  Tax. 

ACT  No.  31  of  1920. 

House  Bill  No.  223,  Substituted  for  House  Bill  No.  119. 
By  Mr.  Dreyfous. 

AN  ACT. 

To  carry  into  effect  Article  229  of  the  Constitution  of  1898 
as  amended  at  the  election  in  November,  1910,  and  as  repeated 
in  the  Constitution  of  1913,  by  levying  a  license  tax  upon  all 
persons,  firms,  corporations,  or  association  of  persons  en- 
gaged in  the  business  of  severing  natural  resources  from  the 
soil  or  water;  including  all  forms  of  timber,  turpentine  and 
other  forest  products ;  minerals,  such  as  oil,  gas,  sulphur,  salt, 
coal  and  ores ;  also  marble,  stone,  gravel,  sand,  shells  and  other 
natural  deposits ;  and  prescribing  the  method  of  collecting  and 
enforcing  the  payment  of  such  license  tax ;  requiring  all  tliose 
engaged  in  the  severance  of,  and  dealing  in,  such  natural  re- 


154 


sources  to  make  such  reports  of  their  business  as  may  be  nec- 
essary for  the  proper  enforcement  of  this  act ;  to  provide  pen- 
alties ;  and  to  repeal  certain  laws  and  all  laws  in  conflict  here- 
with. 

Section  1.  Be  it  enacted  by  the  General  Assembly  of  the 
State  of  Louisiana,  That  there  is  hereby  levied  a  license  tax 
for  the  year  1920  and  for  each  subsequent  year  upon  each  per- 
son engaged  in  the  business  of  severing  natural  resources 
from  the  soil  or  water ;  including  all  forms  of  timber,  turpen- 
tine and  other  forest  products ;  minerals,  such  as  oil,  gas,  sul- 
phur, salt,  coal  and  ores;  also  marble,  stone,  gravel,  sand, 
shells  and  other  natural  deposits.  Said  license  taxes  shall  be 
collected  quarterly  by  the  tax  collectors  as  hereinafter  set 
forth  and  paid  into  a  special  fund  which  is  hereby  created  to 
be  known  as  the  Severance  License  Tax  Fund  of  the  State  of 
Louisiana.  The  license  to  operate  in  each  quarter  shall  be 
based  on  the  market  value  of  the  quantity  severed  in  the  last 
preceding  quarter-annual  period. 

Section  2.  Be  it  further  enacted,  etc.,  That  every  such  per- 
son, firm,  corporation  or  association  of  persons  engaged  with- 
in the  State  in  the  business  of  severing  any  or  all  such  natural 
resources  from  the  soil  or  water  shall,  within  thirty  (30)  days 
after  the  expiration  of  each  quarter-annual  period  expiring, 
respectively,  on  the  last  day  of  June,  September,  December 
and  March  of  each  year,  file  with  the  Supervisor  of  Public 
Accounts  a  statement  under  oath,  on  forms  prescribed  by  him, 
of  the  business  conducted  by  such  persons,  firm,  corporation 
or  association  of  persons  during  the  last  preceding  quarter- 
annual  period,  showing  the  kind  of  natural  resources  so  sev- 
ered or  produced,  the  gross  quantity  and  actual  cash  value 
thereof,  and  such  other  reasonable  and  necessary  information 
pertaining  thereto  as  the  Supervisor  of  Public  Accounts  may 


STATUTES— SEVERANCE  TAX  155 

require  for  the  proper  enforcement  of  the  provisions  of  this 
act.  There  shall  also  be  shown  on  such  quarterly  reports  the 
location  of  each  such  natural  resource  and  the  place  or  places 
where  produced  or  severed  from  the  soil  or  water.  At  the 
time  of  rendering  such  quarter-annual  report  each  such  per- 
son, firm,  corporation  or  association  of  persons  shall  concur- 
rently file  a  duplicate  thereof  with,  and  pay  to,  the  tax  collec- 
tor of  the  parish  where  said  natural  resource  is  taken  or  sev- 
ered from  the  soil  or  water  a  license  tax  equal  to  two  per 
centum  (2%)  of  the  gross  value  of  the  total  production  there- 
of during  the  preceding  three  months;  and  the  value  of  all 
such  products  shall  be  computed  as  of  the  time  when,  and  at 
the  place  where,  each  such  product  or  natural  resource  is 
severed  or  taken  from  the  soil  or  water.  For  the  purpose  of 
this  act  the  market  value  of  all  such  products  or  natural  re- 
sources shall  be  computed  in  their  unmanufactured  state  im- 
mediately after  severance  fromj  the  soil  or  water. 

The  making  of  said  reports,  and  the  payment  of  said  license 
taxes,  shall  be  by  those  actually  engaged  in  the  operation  of 
severing,  whether  it  be  the  owner  of  the  soil,  or  a  lessee  who 
is  severing  from  the  soil  of  another  or  the  owner  of  any  such 
natural  resource  severing  from  the  soil  of  another. 

Section  3.  Be  it  further  enacted,  etc.,  That  the  Supervisor 
of  Public  Accounts  shall  have  the  power  to  require  any  such 
person,  firm,  corporation  or  association  of  persons  engaged 
in  severing  all  such  natural  products  from  the  soil  or  water 
to  furnish  any  additional  information  by  him  deemed  to  be 
necessary  for  the  purpose  of  commuting  the  amount  of  said 
license  tax:  and  for  said  purpose  to  examine  books,  persons; 
and  to  that  end  shall  have  power  to  examine  witnesses,  and 
if  any  such  witness  shall  fail  or  refuse  to  appear  at  the  request 
of  the  Supervisor  of  Public  Accounts,  or  refuse  access  to 


156  STATUTES— SEVERANCE  TAX 

books,  records  and  files,  said  Supervisor  of  Public  Accounts 
shall  certify  the  facts  and  the  name  of  the  witness  so  failing 
and  refusing  to  appear,  or  refusing  access  to  books  and 
papers,  to  the  District  Court  of  the  State  having  jurisdiction 
of  the  party;  and  said  court  shall  thereupon  issue  a  summons 
to  the  said  party  to  appear  before  the  said  Supervisor,  or  his 
assistant,  at  a  place  designated  within  the  jurisdiction  of  the 
court,  on  a  day  fixed,  to  be  continued  as  occasion  may  require, 
and  give  such  evidence,  and  open  for  inspection  such  books 
and  papers  ,as  may  be  required,  for  the  purpose  of  ascertain- 
ing whether  or  not  any  return  so  made  is  the  true  and  correct 
return  as  herein  required ;  and  whenever  it  shall  appear  to  the 
Supervisor  that  any  such  person,  firm,  corporation  or  asso- 
ciation of  persons  engaged  in  severing  such  natural  products 
from  the  soil  or  water  has  unlawfully  made  an  untrue  or  in- 
correct return,  as  herein  provided,  said  Supervisor  shall  cor- 
rect the  return  and  shall  compute  said  license  tax  on  same, 
and  certify  the  same  to  the  tax  collector  for  collection. 

Section  4.  Be  it  further  enacted,  etc.,  That  the  license  tax 
provided  by  this  act  shall  become  delinquent  after  the  date 
fixed  for  each  quarter-annual  report  to  be  filed  in  the  office 
of  the  Supervisor  of  Public  Accounts,  and  from  such  time 
shall,  as  a  penalty  for  such  delinquency,  be  subject  to  similar 
penalties  to  those  provided  in  the  general  license  laws  of  this 
State;  and  the  payment  of  the  license  tax  levied  by  this  act 
shall  be  in  addition  to,  and  shall  not  affect  the  liability  of  the 
parties  so  taxed  for,  the  payment  of  all  state,  parochial,  muni- 
cipal, district  and  special  taxes  upon  their  real  estate  and  other 
corporal  property;  but  no  other  tax  in  addition  hereto  shall 
be  imposed  upon  the  rights  to  produce  in  this  State  those 
things  whose  production  is  subject  to  a  license  tax  by  the 
provisions  of  this  act. 


STATUTES— SEVERANCE  TAX  157 

Section  5.  Be  it  further  enacted,  etc.,  That  if  any  person 
firm,  corporation  or  association  of  persons  shall  fail  to  make 
a  report  of  the  gross  production  and  value  of  its  natural  prod- 
ucts (upon  which  the  license  tax  is  herein  levied)  within  the 
time  prescribed  by  law  for  such  report,  it  shall  be  the  duty  of 
the  Supervisor  of  Public  Accounts  to  examine  the  books,  rec- 
ords ,and  files  of  any  such  person,  firm,  corporation  or  asso- 
ciation of  persons  to  ascertain  the  amount  and  value  of  such 
production  and  to  compute  the  tax  thereon  as  provided  herein, 
and  according  to  the  procedure  hereinbefore  provided,  where 
witnesses,  refuse  to  testify,  or  access  to  books  and  papers  is 
refused,  and  shall  add  thereto  the  cost  of  such  examination, 
together  with  any  penalties  accruing  thereon. 

Section  6.  Be  it  further  enacted,  etc.,  That  when  any 
license  tax  provided  for  in  this  act  shall  become  delinquent, 
the  Supervisor  of  Public  Accounts  shall  issue  an  order  directed 
to  the  Sheriff  of  any  parish  wherein  the  same  or  any  part 
thereof  accrued,  and  the  sheriff  to  whom  said  order  shall  be 
directed  shall  proceed  against  the  property,  assets,  and  effects 
of  the  person,  firm,  corporation  or  association  of  persons 
against  whom  said  license  tax  is  assessed  in  the  same  manner 
as  he  is  authorized  by  the  general  license  laws  to  proceed  in 
the  collection  of  delinquent  licenses,  collecting  penalties  as 
prescribed  by  general  laws. 

Section  7.  Be  it  further  enacted,  etc.,  That  any  person  who 
shall  intentionally  make  any  false  oath  to  any  report  required 
by  the  provisions  of  this  act  shall  be  deemed  guilty  of  perjury 
and  shall  be  subject  to  all  penalties  prescribed  for  said  crime. 

Section  8.  Be  it  further  enacted,  etc.,  That  it  is  hereby 
made  the  duty  of  the  Supervisor  of  Public  Accounts  to  super- 
vise and  enforce  the  collection  of  all  license  taxes  that  may  be 
due  under  the  provisions  of  this  act ;  and,  to  that  end,  the  said 


158  STATUTES— SEVERANCE  TAX 

Supervisor  is  hereby  vested  with  all  of  the  power  and  author- 
ity conferred  by  this  act. 

Section  9.  Be  it  further  enacted,  etc.,  That  it  is  hereby 
made  the  duty  of  all  purchasers  and  others  dealing  in  any 
natural  products  severed  from  the  soil  or  water  of  Louisiana 
to  file  quarterly  with  the  said  Supervisor  of  Public  Accounts 
a  statement,  under  oath,  showing  the  names  and  addresses 
of  all  persons,  firms,  corporations  or  associations  of  persons 
from  whom  each  said  purchaser  or  dealer  has  purchased  any 
natural  product  severed  from  the  soil  or  water  of  Louisiana 
during  said  quarter;  together  with  the  total  quantity  of,  and 
gross  value  paid  for,  each  such  natural  product.  Said  reports 
shall  be  filed  within  thirty  (30)  days  after  the  expiration  of 
each  quarter,  and  shall  be  made  on  such  forms  as  may  be  pre- 
scribed by  said  Supervisor  of  Public  Accounts.  The  failure 
of  any  person,  firm,  corporation  or  association  of  persons  to 
make  reports  as  herein  provided  shall  be  punished  by  fine  of 
not  less  than  fifty  dollars  ($50.00)  nor  more  than  five  hun- 
dred dollars  ($500.00)  for  each  such  offense. 

Section  10.  Be  it  further  enacted,  etc.,  That  Act  No.  296 
of  1914  and  all  laws  or  parts  of  laws  in  conflict  with  the  pro- 
visions of  the  present  Act,  and  especially  Act  No.  20  of  the 
Extra  Session  of  1918,  be  and  the  same  are  hereby  repealed; 
provided,  however,  that  nothing  contained  in  this  act  shall 
in  any  wise  be  construed  to  impair,  or  deprive  the  State  of, 
whatever  rights  it  may  have  against  parties  subject  to  a  license 
tax  under  said  Act  No.  20  of  the  Extra  Session  of  1918  and 
other  laws;  and  all  rights,  interests  and  titles  of  the  State  to 
any  license  taxes  that  may  be  legally  due  under  said  Act  No. 
20  of  the  Extra  Session  of  1918  and  other  laws  are  hereby 
specially  reserved,  whether  the  same  be  in  litigation  or  not; 
it  being  the  true  intent  and  purpose  of  the  present  act  that 


STATUTES— SEVERANCE  TAX  159 

said  Act  No.  20  of  the  Extra  Session  of  1918  and  other  laws 
shall  remain  in  full  force  and  effect  until  such  license  taxes 
shall  become  due  under  this  present  act;  and  no  obligation 
that  may  be  due  the  State  for  license  taxes  under  said  Act  No. 
20  of  the  Extra  Session  of  1918,  and  other  laws  prior  to  the 
date  when  this  present  act  shall  go  into  effect  shall  in  any  man- 
ner be  impaired;  provided  further  that  all  funds  collected 
under  this  act  and  said  prior  tax  laws  shall  be  turned  into  the 
Severance  License  Tax  Fund  of  the  State  of  Louisiana. 

Section  11.  Be  it  further  enacted,  etc.,  That  this  act  shall 
take  effect  from  and  after  July  1,  1920;  and  the  first  quarter- 
ly report  thereunder,  and  license  tax  payable  on  the  value  of 
the  production  shown  thereby,  shall  be  computed  on  the  opera- 
tions of  the  preceding  three  months  ending  June  30,  1920. 

Section  12.  Be  it  further  enacted,  etc.,  That  if  any  clause, 
sentence,  paragraph,  or  part  of  this  act,  shall  for  any  reason  be 
adjudged  by  any  court  of  competent  jurisdiction  to  be  invalid, 
such  judgment  shall  not  affect,  impair  or  invalidate  the  re- 
mainder of  this  act;  but  shall  be  confined  in  its  operation  to 
the  clause,  sentence,  paragraph,  or  any  part  thereof,  directly 
involved  in  the  controversy  in  which  such  judgment  has  been 
rendered. 

R.  F.  WALKER, 
Speaker  of  the  House  of  Representatives. 

HEWITT  BOUANCHAUD, 

Lieutenant  Governor  and  President  o  fthe  Senate. 
Approved:  June  30,  1920. 

JNO.  M.  PARKER, 
Governor  of  the  State  of  Louisiana. 
Atrue  copy: 

JAMES  J.  BAILEY, 

Secretary  of  State. 


160  STATUTES— GASOLINE  TAX 

Gasoline  Tax. 

ACT  No.  81  of  1921. 

House  Bill  No.  4.  By  Mr.  Smith,  of  Vermillion. 

AN  ACT. 

Levying  a  license  tax  of  one  cent  per  gallon  on  all  gasoline 
or  motor  fuel  sold  in  the  State  of  Louisiana  for  domestic  con- 
sumption; defining  motor  fuel;  prescribing  the  method  of 
collecting  and  enforcing  payment  of  such  license  tax,  and 
providing  for  the  expenses  thereof;  requiring  all  those  en- 
gaged in  the  handling,  sale,  or  distribution  of  same  to  make 
such  reports  of  their  business  as  may  be  necessary  for  the 
proper  enforcement  of  this  Act;  providing  penalties;  direct- 
ing that  all  revenues  or  moneys  received  under  the  provisions 
of  this  Act  be  dedicated  to  the  General  Highway  Fund;  and 
repealing  all  laws  or  parts  of  laws  in  conflict  herewith. 

Section  1.  Be  it  enacted  by  the  Legislature  of  Louisiana; 
That  there  is  hereby  levied  a  license  tax  of  one  cent  per  gallon 
on  all  gasoline  and  motor  fuel  sold  in  the  state  of  Louisiana 
for  domestic  consumption. 

The  term  "motor  fuel"  is  defined  as  meaning  all  volatile 
gas  generating  liquids  having  a  flash  point  below  110  degrees 
F.,  commonly  used  to  propel  motors  or  motor  vehicles. 

It  is  understood,  however,  that  for  the  purposes  of  this  act 
that  the  product  commonly  known  as  cashinghead  and  absorp- 
tion gas,  or  cashinghead  and  absorption  gasoline  shall  be  ex- 
cepted  from  the  operation  of  the  tax  herein  provided  when  sold 
to  be  blended  or  compounded  with  other  less  volatile  liquids  in 
the  manufacture  of  motor  fuel.  Reports  of  all  such  sales, 


STATUTES— GASOLINE  TAX  161 

however  shall  be  furnished  the  Supervisor  or  Public  Accounts 
with  the  report  required  by  Section  Four  of  this  Act. 

Section  2.  The  aforesaid  license  tax  of  one  cent  per  gallon 
shall  be  collectible  from  all  persons,  firms,  corporations  or  as- 
sociations of  persons  engaged  as  dealers  in  the  handling,  sale 
or  distribution  of  such  products  within  the  State,  the  method 
of  collection  to  be  prescribed  in  Section  4  of  this  Act.  The 
term  "dealer,"  as  used  in  this  Act,  is  defined  to  mean  any  per- 
son, firm,  corporation,  or  association  of  persons  who  pro- 
duces, refines,  manufactures,  blends  or  compounds  gasoline 
or  motor  fuel  for  sale  to  the  jobber,  consumer,  or  to  persons, 
firms,  corporations  or  associations  of  persons  who  in  turn  sell 
to  the  jobber  or  consumer.  The  term  "dealer"  is  further  de- 
fined to  mean  the  person,  firm,  corporation  or  association  of 
persons  who  imports  such  gasoline  or  motor  fuel  from  other 
States  for  distribution,  sale  or  use  in  the  State  of  Louisiana. 

Each  and  every  dealer  shall  be  required  to  take  out  a  license 
monthly  to  sell  gasoline  or  motor  fuel.  The  license  to  operate 
in  each  month  shall  be  based  on  the  sales  of  such  gasoline  or 
motor  fuel,  as  defined  herein,  sold  in  the  last  preceding  month- 
ly period. 

Section  3.  All  persons,  firms,  corporations,  or  associations 
of  persons,  importing  such  gasoline  or  motor  fuels  from  other 
States  shall,  within  five  (5)  days  after  receiving  such  ship- 
ments, report  to  the  Supervisor  of  Public  Accounts,  on  blanks 
furnished  by  that  officer,  the  persons,  firms,  corporations,  or 
association?  of  persons  from  whom  such  shipments  were  re- 
ceived, the  dates  shipped,  the  dates  received,  and  the  gallon- 
age  of  each  of  the  classes  of  such  gasoline  or  motor  fuels  re- 
ceived; and  such  report  shall  state  whether  such  fuels  are  to 
be  retailed  or  used  in  the  State  of  Louisiana,  or  exported  to 
another  State  or  foreign  country.  The  statements  rendered 


162  STATUTES— GASOLINE  TAX 

to  the  Supervisor  of  Public  Accounts  shall  be  supported  by 
affidavits  properly  sworn  to  before  an  officer  of  the  State 
empowered  to  accept  affidavits  ,and  in  order  that  the  Super- 
visor may  have  additional  means  of  checking  up  the  accuracy 
of  such  statements,  the  records,  books,  and  other  documents 
of  those  making  them,  as  well  as  those  of  common  carriers 
relative  to  such  shipments  are  hereby  declared  to  be  accessible 
to  the  Supervisor  of  Public  Accounts. 

Section  4.  Every  such  person,  firm,  corporation,  or  asso- 
ciation of  persons  engaged  as  a  dealer  in  the  handling,  sale  or 
distribution  of  such  gasoline  or  motor  fuels  for  consumption 
within  the  State  shall,  within  twenty  days  after  the  expiration 
of  each  monthly  period,  (periods  to  be  computed  from  the 
first  day  of  the  month  to  the  last  day  thereof)  file  with  the 
Supervisor  of  Public  Accounts  a  statement,  under  oath,  on 
forms  prescribed  and  furnished  by  him,  of  the  business  con- 
ducted by  such  person,  firm,  corporation,  or  association  of 
persons  during  the  last  preceding  monthly  period,  showing 
the  number  of  gallons  of  each  o  fthe  classes  of  fuel  enumer- 
ated in  this  act,  that  were  sold  to  persons,  firms,  corporations, 
or  associations  of  persons  within  the  State;  and  every  such 
person,  firm,  corporation  or  association  of  persons  reporting 
to  the  Supervisor  of  Public  Accounts  shall,  concurrently,  re- 
mit to  said  Supervisor  an  amount  based  on  that  statement 
equal  to  one  cent  per  gallon  as  the  license  tax  due  for  the 
month  next  succeeding  the  month  which  the  said  statement 
covers. 

Section  5.  The  Supervisor  of  Public  Accounts  shall,  within 
the  first  five  days  of  each  calendar  month,  forward  the  full 
amount  collected  by  him  during  the  preceding  calendar  month 
to  the  State  Treasurer,  to  be  placed  to  the  credit  of  the  Gen- 
eral Highway  Fund,  created  by  Section  22  of  Article  6  of  the 


STATUTES— GASOLINE  TAX  163 

Constitution,  and  the  State  Treasurer  shall,  on  the  first  day 
of  each  and  every  month,  notify  in  writing  the  Director  of 
Highways  of  the  State  of  Louisiana  of  the  total  amount  re- 
ceived from  the  Supervisor  and  placed  to  the  credit  of  the 
General  Highway  Fund  from  the  sources  herein  specified. 

Section  6.  It  is  the  purpose  of  this  act  to  centralize  the 
collection  of  the  license  tax  herein  authorized  in  the  hands  of 
those  who  originally  dispose  of  gasoline  or  motor  fuels  for 
distribution  or  consumption  within  the  State.  But  in  no  case 
shall  there  be  a  duplication  of  the  collection  of  the  license  tax 
herein  authorized. 

Section  7.  The  Supervisor  of  Public  Accounts  shall  have 
the  power  to  require  any  person,  firm,  corporation,  or  associa- 
tion of  persons  engaged  in  the  handling,  sale  or  distribution 
of  gasoline  or  motor  fuel,  as  described  herein,  to  furnish  any 
additional  information  by  him  deemed  to  be  necessary  for  the 
purpose  of  computing  the  amount  of  said  license  tax ;  and  for 
said  purpose  to  examine  the  books,  records  and  files  of  such 
person,  firm,  corporation,  or  association  of  persons;  and  to 
that  end  shall  have  the  power  to  examine  witnesses,  and  if 
any  such  witnesses  shall  fail  or  refuse  to  appear  at  the  re- 
quest of  the  Supervisor  of  Public  Accounts,  or  refuse  access 
to  books,  records,  and  files  ,said  Supervisor  of  Public  Ac- 
counts shall  certify  the  facts  and  the  name  of  the  witness  so 
failing  and  refusing,  to  appear,  or  refusing  access  to  books 
and  papers,  to  the  District  Court  of  the  State  having  jurisdic- 
tion of  the  party,  a  copy  of  which  shall  be  sent  to  the  Gover- 
nor; and  said  court  shall  thereupon  issue  a  summons  to  the 
said  party  to  appear  before  the  said  Supervisor  or  his  assis- 
tant at  a  place  designated  within  the  jurisdiction  of  the  court, 
on  a  day  fixed,  to  be  continued  as  occasion  may  require,  and 
give  such  evidence,  and  open  for  inspection  such  books  and 


164  STATUTES— GASOLINE   TAX 

papers  as  may  be  required  for  the  purpose  of  ascertaining 
whether  or  not  any  return  so  made  is  the  true  and  correct  re- 
turn as  herein  required;  and  whenever  it  shall  appear  to  the 
Supervisor  that  any  such  person,  firm,  corporation,  or  asso- 
ciation of  persons  engaged  in  the  handling,  sale  or  distribu- 
tion of  gasoline  or  motor  fuels,  within  the  meaning  of  this 
Act,  has  unlawfully  made  an  untrue  or  incorrect  return,  as 
herein  provided,  the  Supervisor  shall  correct  the  return  and 
shall  compute  said  license  tax  on  same,  and  verify  same  to  his 
department  as  being  the  amount  actually  due  and  owing,  and 
said  Supervisor  shall  concurrently  notify  the  said  person, 
firm,  corporation,  or  association  of  persons  of  such  fact;  and 
in  the  event  said  person,  firm,  corporation,  or  association  of 
persons  shall  not,  within  five  (5)  days  after  such  notification 
make  a  correct  return  and  pay  the  full  amount  due,  the  Super- 
visor of  Public  Accounts  shall,  in  the  name  of  the  State,  enter 
suit  against  such  person,  firm,  corporation,  or  association  of 
persons  for  the  amount  due,  together  with  such  penalties  as 
are  prescribed  in  the  general  license  laws.  Such  suits  shall 
be  by  rule  to  show  cause  within  five  days  why  payment  should 
not  be  made,  and  shall  be  tried  in  the  manner  set  forth  in  the 
general  license  laws  of  the  State. 

Section  8.  The  license  tax  provided  by  this  Act  shall  be- 
come delinquent  on  the  21st  day  of  the  month  for  which  said 
license  tax  is  due,  and  from  such  time  shall,  as  a  penalty  for 
such  delinquency,  be  subject  to  similar  penalties  to  those  pro- 
vided in  the  general  license  laws  of  the  State,  which  are  2  per 
cent  per  month  on  the  amount  of  the  tax  from  the  date  of  de- 
linquency to  date  of  payment,  and  10  per  cent  attorney's  fees 
on  both  the  tax  and  the  penalties  in  all  cases  wherein  the  at- 
torney is  called  on  to  assist  in  the  collection.  The  payment 
of  the  license  levied  by  this  Act  shall  be  in  addition  to,  and 


STATUTES— GASOLINE  TAX  165 

shall  not  affect  the  liability  of  the  parties  so  taxed,  for  the 
payment  of  all  state,  parochial,  municipal,  district  and  special 
taxes  upon  their  real  estate  and  other  corporal  property. 

Section  9.  If  any  person,  firm,  corporation,  or  association 
of  persons  shall  fail  to  make  a  report  of  the  sales  upon  which 
the  license  tax  herein  is  levied,  within  the  time  and  nianner 
herein  prescribed  for  such  report,  it  shall  be  the  duty  of  the 
Supervisor  of  Public  Accounts  to  examine  the  books,  records, 
and  files  of  any  such  person,  firm,  corporation,  or  association 
of  persons  to  ascertain  the  amount  of  such  sales,  and  to  com- 
pute the  tax  thereon  as  provided  herein,  and  according  to  the 
procedure  hereinbefore  provided,  where  witnesses  refuse  to 
testify,  or  access  to  books  and  papers  is  refused,  and  shall  add 
thereto  the  cost  of  such  examination,  together  with  any  pen- 
alties accruing  thereon. 

Section  10.  When  the  license  tax  provided  for  in  this  Act 
shall  become  delinquent,  the  Supervisor  of  Public  Accounts 
shall,  in  the  name  of  the  State,  proceed  against  the  property, 
assets,  and  effects  of  the  person,  firm,  corporation,  or  asso- 
ciation of  persons  against  whom  said  license  tax  is  assessed, 
for  the  purpose  of  collection  of  delinquent  licenses,  and  there 
is  hereby  imposed  and  shall  be  collected  the  same  penalties  as 
prescribed  in  the  general  license  law. 

Section  11.  Any  person,  firm,  corporation,  or  association 
of  persons  who  shall  intentionally  make  any  false  oath  to  any 
report  required  by  the  provisions  of  this  act  shall  be  deemed 
guilty  of  perjury,  and  shall  be  subject  to  all  penalties  pre- 
scribed for  said  crime. 

Section  12.  It  is  hereby  made  the  duty  of  the  Supervisor 
of  Public  Accounts  to  collect,  supervise,  and  enforce  the  col- 
lection of  all  license  taxes  that  may  be  due  under  the  provi- 


166  STATUTES— GASOLINE  TAX 

sions  of  this  Act ;  and,  to  that  end,  the  said  Supervisor  is  here- 
by vested  with  all  of  the  power  and  authority  conferred  by 
this  Act. 

He  shall  give  bond  in  favor  of  the  Governor  of  the  State  or 
his  successor  in  office,  for  the  sum  of  ten  thousand  dollars, 
($10,000.00)  conditioned  on  the  faithful  performance  of  the 
duties  imposed  on  him  by  this  act.  The  premium  on  said  bond 
shall  be  paid  out  of  the  appropriation  made  for  the  expenses  of 
his  office.  The  bond  shall  be  approved  by  the  Governor,  and 
shall  be  filed  in  the  office  of  the  State  Auditor. 

Section  13.  The  failure  of  any  person,  firm,  corporation, 
or  association  of  persons  mentioned  herein,  to  make  reports  as 
herein  provided,  or  to  comply  with  any  other  provision  of  this 
Act,  shall  be  punished  by  a  fine  of  not  less  than  Fifty  Dollars, 
($50.00)  for  each  offense.  This  fine  shall  be  assessed  by  the 
Judge  of  the  District  Court  having  urisdiction  of  the  party, 
or  suit  brought  by  the  Supervisor  of  Public  Accounts. 

Section  14.  The  fines  provided  for  herein  shall  be  collected 
by  the  Sheriff  in  whose  jurisdiction  they  were  assessed,  and 
shall  be  turned  over  in  full  to  the  Supervisor  of  Public  Ac- 
counts, without  any  deduction  therefrom  for  commissions, 
within  fifteen  days  after  collection,  and  the  Supervisor  shall 
in  turn  remit  same  to  the  State  Treasurer,  in  the  same  manner 
and  at  the  same  time  he  remits  license  taxes  collected  under 
the  provisions  of  this  Act,  and  the  State  Treasurer  shall  im- 
mediately credit  same  to  the  General  Highway  Fund.  The 
State  Treasurer  shall  make  a  report  on  the  first  day  of  each 
and  every  month  to  the  Director  of  Highways,  in  detail,  of  all 
amounts  received  from  the  sources  provided  by  the  provisions 
of  this  Act,  placed  to  the  credit  of  the  General  Highway  Fund. 

Section  15.     The  cost  assessed  against  delinquent  persons 


STATUTES— GASOLINE  TAX  167 

for  the  examination  of  their  books,  records  and  files  by  the 
Supervisor  of  Public  Accounts,  as  provided  in  Section  9  of 
this  Act,  shall  be  collected  by  the  Supervisor  and  remitted  to 
the  State  Treasurer  in  the  same  manner  and  at  the  same  time 
that  other  collections  are  remitted,  and  shall  be  credited  to  the 
General  Highway  Fund. 

Section  16.  The  only  legal  evidence  showing  payment  of 
the  license  tax  herein  levied  shall  be  the  appropriate  form  of 
license  issued  by  the  Supervisor  of  Public  Accounts,  and 
signed  by  him  or  by  an  assistant  for  him.  The  giving  of  per- 
sonal receipts  for  money  paid  on  account  of  licenses  by  either 
the  Supervisor  or  any  assistant  is  prohibited. 

Section  17.  For  the  purpose  of  meeting  the  expenses  nec- 
essary for  the  proper  enforcement  of  this  Act,  the  Legislature 
shall  appropriate  from  the  General  Highway  Fund  a  sum  not 
exceeding  Fifteen  Thousand  Dollars  ($15,000.00)  annually. 
The  amount  appropriated  shall  be  drawn  by  the  Supervisor  of 
Public  Accounts  in  monthly  installments,  and  used  by  him  to 
pay  salaries  of  assistants  and  stenographers,  necessary  office 
expenses,  and  the  traveling  expenses  of  himself  and  assistants 
when  away  from  the  office  on  official  buiness. 

Section  18.  This  Act  shall  become  effective  as  provided  for 
by  Section  27  of  Article  3  of  the  Constitution,  but  the  first 
monthly  license  to  be  issued  hereunder  shall  be  for  the  month 
of  January  1922,  same  to  be  based  on  sales  made  during  the 
month  of  December,  1921. 

Section  19.     All  laws  or  pars  of  laws  in  conflict  with  the 
provisions  of  this  act  be  and  the  same  are  hereby  repealed. 
Approved:  By  the  Lieutenant-Goevrnor  and  Acting  Gover- 
nor.     November  18,  1921. 
A  true  copy: 

JAMES  J.  BAILEY, 

Secretary  of  State. 


168  STATUTES— STORAGE    OF   OIL 

Storage  of  Oil. 

ACT  No.  53  of  1920. 

House  Bill  No.  114.  By  Mr.  Shattuck. 

AN  ACT. 

To  amend  and  re-enact  Sections  23  and  58  of  Act  No.  221 
of  the  General  Assembly  of  the  State  of  Louisiana  for  the 
year  1908,  entitled,  "An  act  to  make  uniform  with  the  laws  of 
other  states  the  laws  of  the  State  of  Louisiana  governing 
warehousemen,  and  fixing  their  qualifications,  defining  their 
duties,  providing  the  manner,  method  and  character  of  re- 
ceipts to  be  issued,  declaring  the  extent  and  method  of  their 
negotiation  and  transfer,  fixing  the  rights  and  liabilities 
thereunder,  and  fixing  penalties  for  violation  of  this  Act." 

Section  1.  Be  it  enacted  by  the  General  Assembly  of  the 
State  of  Louisiana  that  Section  23  of  Act  No.  221  of  1908, 
entitled,  "An  Act  to  make  uniform  with  the  laws  of  other 
states  the  laws  of  the  Louisiana  governing  warehouse  receipts 
by  defining  warehousemen,  and  fixing  their  qualifications, 
defining  their  duties,  providing  the  manner,  method  and  char- 
acter of  receipts  to  be  issued,  declaring  the  extent  and  method 
of  their  negotiation  and  transfer,  fixing  the  rights  and  liabili- 
ties thereunder,  and  fixing  penalties  for  violation  of  this  Act," 
be  and  the  same  is  hereby  amended  and  re-enacted  so  as  to 
rad  as  follows,  towit: 

Section  23.  If  authorized  by  agreement,  or  by  custom,  a 
warehouseman  may  mingle  fungible  goods  with  other  goods 
of  the  same  kind  and  grade.  In  such  case  the  various  deposi- 
tors of  the  mingled  goods  shall  own  the  entire  mass  in  com- 
mon, and  such  depositor  shall  be  entitled  to  such  portion 
thereof  as  the  amount  deposited  by  him  bears  to  the  whole. 


STATUTES— STORAGE    OF   OIL  169 

The  provisions  of  this  section  shall  apply  to  crude  petroleum 
when  placed  in  storage  in  a  public  warehouse. 

Be  it  further  enacted,  etc.,  That  Section  58  of  said  Act  No. 
221  of  1908,  be,  and  the  same  is  hereby  amended  and  re-en- 
acted so  as  to  read  as  follows : 

Section  58.  First :  In  this  act,  unless  the  context  or  subject 
matter  otherwise  required : 

"Action"  includes  counter  claim,  set-off  and  suit  in  equity. 

"Delivery"  means  voluntary  transfer  of  possession  from 
one  person  to  another. 

"Fungible  goods"  means  goods  of  which  any  unit  is,  from 
its  nature  or  by  merchantible  custom,  treated  as  the  equivalent 
of  any  other  unit.  Crude  Petroleum  and  its  refined  products 
are  included  within  this  definition.  "Goods"  means  chattels, 
merchandise  or  crude  petroleum  or  its  refined  products  in 
storage,  or  which  has  been  or  is  about  to  be  stored. 

"Holder  of  a  receipt  means  a  person  who  has  both  actual 
possession  of  such  receipt  and  a  right  of  property  therein. 

"Order"  means  an  order  by  indorsement  on  the  receipt. 
"Owner"  does  not  include  mortgagee  or  pledgee. 

"Person'  'includes  a  corporation  or  partnership  of  two  or 
more  persons  having  a  joint  or  common  interest. 

To  "purchase"  includes  to  take  as  mortgagee  or  as  pledgee. 

"Purchaser"  includes  mortgagee  and  pledgee. 
"Receipt"  means  a  warehouse  receipt. 

"Value"  is  any  consideration  sufficient  to  support  a  simple 
contract.  An  antecedent  of  pre-existing  obligation,  whether 
for  money  or  not,  constitutes  value  where  a  receipt  is  taken 
either  in  satisfaction  thereof  or  as  security  therefor. 


170  STATUTES— WASTE 

''Warehouseman"  means  a  person  lawfully  engaged  in  the 
business  of  storing  goods  for  profit. 

"Warehouse"  means  any  structure,  building,  tank  for  stor- 
ing crude  petroleum  or  its  refined  products,  or  receptacle  of 
any  kind,  in  which  goods  as  herein  defined,  are  deposited  or 
stored  for  profit. 

Second:  A  thing  is  done  "in  good  faith"  within  the  mean- 
ing of  this  Act  when  it  is  in  fact  done  honestly,  whether  it  be 
done  negligently  or  not. 

R.  F.  WALKER, 
Speaker  of  the  House  of  Representatives. 

HEWITT  BOUANCHAUD, 
Lieutenant  Governor  and  President  of  the  Senate. 

Approved:  July  5,  1920. 

JOHN  M.  PARKER, 
Governor  of  the  State  of  Louisiana. 

Waste. 

ACT  No.  71  of  1906. 
By  Mr.  Barrett.  Senate  Bill  No.  71. 

AN  ACT. 

To  protect  the  natural  gas  fields  of  this  State;  and  to  pro- 
vide for  closing,  capping  or  plugging  of  wild,  uncontrollable 
or  burning  natural  gas  wells  in  this  State  or  otherwise  pre- 
venting the  escape  and  waste  of  natural  gas  therefrom  by  the 
owners  or  proprietors  thereof  after  due  notice ;  and  providing, 
that  in  default  of  the  owners  or  proprietors  doing  so  after 
such  notice,  that  the  Governor,  on  complaint  of  him  shall  di- 
rect the  Board  of  State  Engineers  to  close,  cap  or  plug  the 


STATUTES— WASTE  171 

same  or  otherwise  prevent  the  escape  and  waste  of  natural 
gas  therefrom  at  the  expense  of  the  owners  or  propritors ;  and 
providing  that  possession  of  such  natural  gas  well  so  closed 
by  the  State,  shall  be  retained  by  the  State  until  the  expense 
of  closing  the  same  is  reimbursed  to  the  State;  and  making 
it  a  misdmeanor  for  any  person  to  wilfully  and  intentionally 
set  fire  to  any  gas  well  or  to  negligently  permit  any  natural 
gas  well  in  his  possession  or  under  his  management  and  con- 
trol, to  catch  on  fire  or  become  wild  and  uncontrollable,  or  to 
negligently  permit  the  escape  and  waste  of  natural  gas  there- 
from; and  making  it  a  misdemeanor  to  abandon  any  well  in, 
near  or  adjacent  to  any  natural  gas  field,  or  apparent  natural 
gas  field,  without  first  plugging  or  securing  the  same  to  pre- 
vent the  admission  of  waste ;  into  the  gas-producing  sand,  and 
making  it  a  misdemeanor  for  any  person  to  intentionally  or 
wilfully  injure  or  damage  the  property,  pipes  or  pipe  lines, 
wells  or  mains  of  any  natural  gas  producing  company  or  to 
intentionally  divert  gas  therefrom;  and  prescribing  penalties 
therefor. 

Section  1.  (Amended  and  re-enacted  by  Act  No.  283  of 
1910.) 

Section  2.  (Amended  and  re-enacted  by  Act  No.  283  of 
1910.) 

Section  3.  Be  it  further  enacted,  etc.,  That  it  shall  be  a  mis- 
demeanor for  any  person  to  wilfully  and  intentionally  set  fire 
to  any  natural  gas  well  or  negligently  permit  or  suffer  any 
natural  gas  well  owned  by  him  or  under  his  management  and 
control  or  in  his  possession,  to  catch  on  fire,  or  go  wild  or  be- 
come uncontrollable,  or  to  negligently  permit  or  suffer  natural 
gas  to  wastefully  escape  or  wastefully  burn  therefrom;  and 
on  conviction  thereof  shall  be  fined  in  a  sum  not  less  than  five 


172  STATUTES— WASTE 

hundred  dollars  ($500.00)  or  imprisonment  of  not  less  than 
three  (3)  months  or  both  at  the  discretion  of  the  court. 

Section  4.  Be  it  further  enacted,  etc.,  That  any  person  who 
shall  intentionally  or  wilfully  injure  or  damage  the  property, 
pipes,  pipe  lines  or  mains  of  any  natural  gas  well  belonging 
to  or  operated  by  any  natural  gas-producing  company,  or  who 
shall  wilfully  or  intentionally  divert  the  gas  from  any  pipe, 
main  or  natural  gas  well,  the  property  of  any  such  natural 
gas-producing  company,  shall  be  deemed  guilty  of  a  misde- 
meanor and  on  conviction  thereof,  shall  be  fined  in  the  sum 
of  not  less  than  one  hundred  dollars  ($100.00)  or  imprison- 
ment of  not  less  than  thirty  (30)  days  or  both  at  the  discretion 
of  the  court. 

Section  5.  Be  it  further  enacted,  etc.,  That  it  shall  be  un- 
lawful for  any  individual,  firm  or  corporation  to  abandon  any 
well  in  or  adjacent  to  a  natural  gas  field  or  an  apparent  natural 
gas  field,  without  first  placing  a  wooden  plug,  properly  made, 
both  above  and  below  the  gas-producing  sand  or  otherwise 
sufficiently  securing  such  well  against  the  admission  of  water 
into  the  gas-producing  sand;  and  whenever  any  individual, 
firm  or  corporation  shall  abandon  such  well  without  first 
plugging  or  securing  the  same  as  above  provided,  to  prevent 
the  admission  of  water  into  the  gas-producing  sand,  he  shall 
be  deemed  guilty  of  a  misdemeanor  and  on  conviction  thereof 
shall  be  subject  to  a  fine  of  not  less  than  one  hundred  dollars 
($100.00)  nor  more  than  one  thousand  dollars  ($1000.00)  or 
imprisonment  of  not  less  than  thirty  (30)  days  nor  more  than 
four  (4)  months,  or  both  at  the  discretion  of  the  court. 

Section  6.  Be  it  further  enacted,  etc.,  That  the  provisions 
of  this  act  shall  apply  to  any  gas  well  or  wells  which  may  be 
bored  or  drlilled  in,  near  to  or  adjacent  to  any  natural  gas 


STATUTES— WASTE  173 

field  or  to  any  apparent  natural  gas  field  and  to  any  such  well 
or  wells  which  have  heretofore  already  been  bored  or  drilled. 

Section  7.  Be  it  further  enacted,  etc.,  That  this  act  shall 
take  effect  from  and  after  its  promulgation. 

J.  Y.  SANDERS, 
Lieutenant  Governor  and  President  of  the  Senate. 

J.  W.  HYAMS, 

Speaker  of  the  House  of  Representatives. 

Approved :  July  4th,  1906. 

NEWTON  C  BLANCHARD, 
Governor  of  the  State  of  Louisiana. 
A  true  copy: 

JOHN  T.  MICHEL, 

Secretary  of  State. 

Conservation- Waste. 

ACT  No.  190  of  1910. 
House  Bill  No.  333. 

AN  ACT. 

To  provide  for  the  conservation  of  natural  gas  by  regula- 
tions to  prevent  waste  in  the  extraction  of  oil  and  gas,  and 
transportation  thereof;  and  to  provide  penalties. 

Section  1.  Be  it  enacted  by  the  General  Assembly  of  the 
State  of  Louisiana,  That  whenever  any  well  shall  have  been 
sunk  for  the  purpose  of  obtaining  natural  gas  or  oil  or  explor- 
ing for  the  same,  and  shall  be  abandoned  or  cease  to  be  oper- 
ated for  utilizing  the  flow  of  gas  or  oil  therefrom,  it  shall  be 
the  duty  of  any  person,  firm  or  corporation  having  the  cus- 


174  STATUTES— WASTE 

tody  of  control  of  such  well  at  the  time  of  such  abandonment 
or  cessation  of  use,  and  also  of  the  owner  or  owners  of  the 
land  wherein  such  well  is  situated,  to  properly  and  securely 
stop  and  plug  the  same  as  follows:  If  such  well  has  not  been 
"shot"  there  shall  be  placed  in  the  bottom  of  the  hole  thereof 
a  plug  of  well-seasoned  pine  wood,  the  diameter  of  which  shall 
be  within  one-half  inch  as  great  as  the  hole  of  such  well,  to 
extend  at  least  three  feet  above  the  salt  water  level,  where 
salt  water  has  been  struck,  such  plug  shall  extend  at  least  three 
feet  from  the  bottom  of  the  well.  In  both  cases  such  wooden 
plugs  shall  be  thoroughly  rammed  down  and  made  tight  by 
the  use  of  drlilling  tools.  After  such  ramming  and  tightening 
the  hole  of  such  well  shall  be  filled  on  top  of  such  plug  with 
finely  broken  stone  or  sand,  which  shall  be  well  rammed  to  a 
point  at  least  four  feet  above  the  gas  or  oil  bearing  rock;  on 
top  of  this  stone  or  sand  there  shall  be  placed  another  wooden 
plug  at  least  five  feet  long  with  diameter  as  aforesaid,  which 
shall  be  thoroughly  rammed  and  tightened.  In  case  such  well 
has  been  "shot"  the  bottom  of  the  hole  thereof  shall  be  filled 
with  a  proper  and  sufficient  mixture  of  sand,  stone  and  dry 
cement,  so  as  to  form  a  concrete  up  to  a  point  at  least  eight 
feet  above  the  top  of  the  gas  or  oil  bearing  rock  or  rocks,  and 
on  top  of  this  filing  shall  be  placed  a  wooden  plug  at  least  six 
feet  long  with  diameter  as  aforesaid,  which  shall  be  properly 
rammed  as  aforesaid.  The  casing  from  the  well  shall  then  be 
pulled  or  withdrawn  therefrom,  and  immediately  thereafter 
a  cast  iron  ball,  eight  inches  in  diameter,  shall  be  dropped  in 
the  well,  and  securely  rammed  into  the  shale  by  the  driller  or 
owner  of  the  well,  after  which  not  less  than  one  cubic  yard  of 
sand  pumping  or  drilling  taken  from  the  well  shall  be  put  on 
top  of  said  iron  ball. 

Section  2.    Be  it  further  enacted,  etc.,  That  it  shall  be  un- 


STATUTES— WASTE  175 

lawful  for  any  person,  firm  or  corporation  having  possession 
or  control  of  any  natural  gas  or  oil  well,  whether  as  a  contrac- 
tor ,owner,  lessee,  agent  or  manager,  to  allow  or  permit  the 
flow  of  gas  or  oil  from  any  such  well,  to  escape  into  the  open 
air,  without  being  confined  within  such  well  or  proper  pipes, 
or  other  safe  receptacle,  for  a  period  longer  than  two  (2) 
days,  next  after  gas  or  oil  shall  have  been  struck  in  such  well, 
and  thereafter  all  such  gas  or  oil  shall  be  safely  and  securely 
confined  in  such  wells,  pipes  or  other  safe  and  proper  recep- 
tacles ;  provided  that  this  law  shall  not  apply  to  any  well  that 
is  being  operated  for  the  production  of  oil  and  in  which  the 
oil  produced  has  a  higher  salable  value  in  the  field  than  has 
the  gas  so  lost. 

Section  3.  Be  it  further  enacted,  etc.,  That  the  Supervisor 
of  minerals  shall  have,  and  he  is  hereby  invested  with,  author- 
ity to  prescribe  regulations  for  the  boring  of  oil  and  gas  wells, 
to  the  end  that  blowouts,  and  gas  waste,  otherwise,  shall  be 
avoided,  which  regulations  shall  be  followed  by  drillers. 

Section  4.  Be  it  further  enacted,  etc.,  That  any  person, 
firm  or  corporation,  violating  the  provisions  of  Sections  1  and 
2  of  this  Act  or  any  reasonable  regulations  provided  by  the 
Supervisor  of  minerals,  shall  be  guilty  of  a  misdemeanor,  and 
upon  conviction  thereof  shall  be  fined  in  any  sum  not  exceed- 
ing five  hundred  dollars  ($500.00)  or  shall  be  imprisoned  for 
a  period  not  exceeding  three  months,  in  the  discretion  of  the 
court. 

Section  5.  Be  it  further  enacted,  etc.,  That  whenever  any 
person,  or  corporation  in  possession  or  control  of  any  well  in 
which  natural  gas  or  oil  has  been  found  shall  fail  to  comply 
with  the  provisions  of  this  Act,  any  person  or  corporation 
lawfully  in  possession  of  lands  situated  adjacent  to  or  in  the 
vicinity  or  neighborhood  of  such  well  may  enter  upon  the 


176  STATUTES— WASTE 

lands  upon  which  such  well  is  situated  and  take  possession  of 
such  well  from  which  gas  or  oil  is  allowed  to  escape  in  viola- 
tion of  the  provisions  of  Sections  1  and  2  of  this  Act,  and  pack 
and  tube  such  well  and  shut  in  and  secure  the  flow  of  gas  or 
oil,  and  maintain  a  civil  action  in  any  court  of  competent  juris- 
diction in  this  State  against  the  owner,  lessee,  agent  or  man- 
ager of  said  well,  and  each  of  them  jointly  and  severally,  to 
recover  the  cost  and  expenses  of  such  tubing  and  packing,  to- 
gether with  attorney's  fees  and  costs  of  suit.  This  shall  be  in 
addition  to  the  penalties  provided  by  Section  4  of  this  Act. 

Section  6.  Be  it  further  enacted,  etc.,  That  this  Act  shall 
take  effect  from  and  after  its  passage,  and  all  laws  in  conflict 
herewith  are  hereby  repealed. 

H.  G.  DUPRE, 
Speaker  of  the  House  of  Representatives. 

P.  M.  LAMBREMONT, 
Lieutenant  Governor  and  President  of  the  Senate. 

Approved:  July  6,  1910. 

J.  Y.  SANDERS, 
Governor  of  the  State  of  Louisiana. 
A  true  copy: 

JOHN  T.  MICHEL, 

Secretary  of  State. 

Waste. 

ACT  No.  283  of  1910. 
House  Bill  No.  426. 

AN  ACT. 
To  amend  and  re-enact  Sections  1  and  2  of  Act  71  of  the 


STATUTES— WASTE  177 

General  Assembly  of  the  State  of  Louisiana  of  theh  year  1906, 
entitled: 

"An  Act  to  protect  the  Natural  Gas  fields  of  this  State;  and 
to  provide  for  closing,  capping  or  plugging  of  wild,  uncon- 
trollable or  burning  natural  gas  wells  in  this  State  or  other- 
wise preventing  the  escape  and  waste  of  natural  gas  therefrom 
by  the  owners,  or  proprietors  thereof  after  due  notice;  and 
providing  that  in  default  of  the  owners  of  proprietors  doing 
so  after  such  notice,  that  the  Governor,  on  complaint  to  him 
shall  direct  the  Board  of  State  Engineers  to  close,  cap  or  plug 
the  same  or  otherwise  prevent,  the  escape  and  waste  of  natural 
gas  therefrom  at  the  expense  of  the  owners  or  proprietors; 
and  providing  that  possession  of  such  natural  gas  well  so 
closed  by  the  State  shall  be  retained  by  the  State  until  the  ex- 
pense of  closing  the  same  is  reimbursed  to  the  State ;  and  the 
making  it  a  misdemeanor  for  any  person  to  wilfully  and  in- 
tentionally set  fire  to  any  gas  well  or  to  negligently  permit  any 
natural  gas  well  in  his  possession  or  under  his  management 
and  control,  to  catch  on  fire  or  become  wild  and  uncontrol- 
able,  or  to  negligently  permit  the  escape  and  waste  of  natural 
gas  therefrom ;  and  making  it  a  misdemeanor  to  abandon  any 
well  in,  near,  or  adjacent  to  any  natural  gas  field,  or  apparent 
natural  gas  field  without  first  plugging  or  securing  the  same 
to  prevent  the  admission  of  water;  into  the  gas  producing 
sand,  and  making  it  a  misdemeanor  for  any  person  to  inten- 
tionally or  wilfully  injure  or  damage  the  property,  pipes  or  pipe 
lines,  wells  or  mains  of  any  natural  gas  producing  company 
or  to  intentionally  divert  gas  therefrom;  and  prescribing  pen- 
alties therefor. 

Section  1.  Be  it  enacted  by  the  Beneral  Assembly  of  the 
State  of  Louisiana,  That  in  order  to  protect  the  natural  gas 


178  STATUTES— WASTE 

fields  of  this  State,  it  is  hereby  declared  to  be  unlawful  and  a 
nuisance  for  any  person,  firm,  or  corporation  to  negligently 
permit  or  suffer  any  natural  gas  well  to  go  wild  or  become 
uncontrolable  or  wastefully  burn  and  the  owner  or  proprietor 
or  person  in  possession  of  any  wild,  uncontrolable  or  waste- 
fully  burning  natural  gas  well,  shall  close  the  same  and  secure- 
ly cap  it  or  plug  it  or  otherwise  prevent  the  escape  and  waste 
or  wastefully  burning  of  natural  gas  therefrom,  after  five  (5) 
days'  written  notice  to  such  owner  or  proprietor  or  person  in 
possession  to  do  so;  such  notice  to  be  given  by  any  person 
having  an  interest  in  stopping  such  wild,  uncontrolable,  waste- 
fully  burning  natural  gas  well;  or  such  notice  may  be  given 
by  any  constable  or  Justice  of  the  Peace  of  the  parish  where 
such  wild  or  uncontrolable  or  wasteful  or  wastefully  burning 
natural  gas  well  may  be  located,  or  the  demand  of  any  person 
having  an  interest  in  the  stopping  of  the  same. 

Section  2.  Be  it  further  enacted,  etc.,  That  whenever  such 
owner  or  proprietor  or  person  in  possession  of  such  wild,  or 
uncontrolable,  wasteful  or  wastefully  burning  natural  gas 
well,  shall  be  notified  to  close,  cap  or  plug  the  same  ,or  other- 
wise prevent  the  escape  and  waste  or  wasteful  burning  of 
natural  gas  therefrom,  he  shall  in  good  faith  commence  the 
work  of  so  capping  or  plugging  the  same  in  order  to  prevent 
the  escape  and  waste  or  wasteful  burning  of  natural  gas  there- 
from, within  five  (5)  days  from  the  date  of  the  receipt  of 
such  notice  as  provided  for  in  the  first  section  of  this  Act; 
and  in  the  event  that  the  owner  or  proprietor  or  person  in 
possession  of  such  natural  gas  well,  fails  ,refuses,  or  neglects 
to  close,  plug  or  cap  the  same  or  otherwise  prevent  the  escape 
and  waste  or  wasteful  burning  of  natural  gas  or  commence 
in  good  faith  the  work  of  doing  so  within  five  (5)  days  from 


STATUTES— WASTE  17U 

the  receipt  of  such  notice,  the  Governor,  on  the  written  com- 
plaint of  any  person,  firm  or  corporation  having  an  interest 
in  the  stopping,  plugging  or  closing  of  such  natural  gas  well, 
shall  direct  the  Board  of  State  Engineers  to  take  charge  of 
the  work  of  closing  such  wild  or  uncontrolable  or  wastefully 
burning  natural  gas  well,  and  the  Board  of  State  Engineers 
shall  then  proceed  at  once  to  cap  or  close  or  plug  the  same  or 
otherwise  prevent  the  wasteful  escape  or  wasteful  burning  of 
natural  gas  from  such  well,  at  the  expense  of  the  owner  or 
proprietor  thereof ;  and  to  secure  to  the  State  the  cost  and  ex- 
pense of  such  closing,  capping  or  plugging  of  such  well,  pos- 
session of  the  same,  with  sufficient  ground  adjacent  thereto,  it 
belonging  to  such  owner  or  proprietor,  with  the  rents,  revenues 
and  incomes  therefrom,  shall  be  retained  by  the  State  until  the 
full  and  final  payment  of  such  costs  and  expense  shall  be  re- 
imbursed to  the  State,  and  when  such  owner  or  proprietor  or 
person  in  possession  of  such  well  shall  pay  such  cost  or  ex- 
pense to  the  State,  less  the  revenues,  rents  and  incomes  de- 
rived therefrom  by  the  State  while  the  same  was  in  possession 
of  the  State,  the  State  shall  restore  possession  of  said  well  to 
him  provided,  in  the  event  that  the  rents,  revenues,  and  in- 
comes shall  not  be  sufficient  to  reimburse  the  State  as  pro- 
vided for  in  this  section,  then  and  in  that  event  the  cost  and 
expense  of  closing,  capping  or  plugging  of  such  wild  uncon- 
trollable or  wasteful  natural  gas  well,  shall  operate  on  a  lien 
and  privilege  upon  all  of  the  property  of  whatsoever  nature 
of  the  owner  of  the  said  wild  well,  and  the  State  shall  proceed 
to  enforce  said  lien  and  privilege  by  suit  before  any  court  of 
competent  jurisdiction,  the  same  as  in  other  civil  actions  and 
the  judgment  so  obtained,  shall  be  executed  in  the  same  man- 
ner as  now  provided  by  law.  If  the  property  so  siezed  and 
sold  brings  an  amount  in  excess  of  the  cost  and  expense  occa- 


180  STATUTES— WASTE 

sioned  by  the  State  as  provided  in  this  Section;  then  and  in 
that  event  such  excess  or  balance  shall  be  paid  over  to  the 
owner  of  such  wild  gas  well. 

H.  G.  DUPRE, 
Speaker  of  the  House  of  Representatives. 

P.  M.  LAMBREMONT, 
Lieutenant  Governor  and  President  of  the  Senate. 

Approved:  July  7,  1910. 

J.  Y.  SANDERS, 
Governor  of  the  State  of  Louisiana. 
A  true  copy: 

JOHN  T.  MICHEL, 

Secretary  of  State. 

Waste. 

ACT  No.  268  of  1918. 

Senate  Bill  No.  193.  By  Messrs.  Smith  and  Fields, 

(Substitute  for  Senate  Bills  Nos.  28  and  69.) 

AN  ACT. 

Defining  waste  and  making  the  waste  or  undue  use  of  nat- 
ural gas  a  misdemeanor ;  empowering  the  Department  of  Con- 
servation with  authority  to  prevent  the  use  of  natural  gas  with 
premature  exhaustion,  and  charging  the  said  Department  with 
the  duty  to  regulate  the  method  of  taking  natural  gas  from 
any  well  or  more  than  twenty-five  per  cent  of  the  potential 
ceedings  to  enforce  the  provisions  of  this  act;  requiring  the 
sellers  and  users  of  natural  gas  in  manufacturing  enterprises 
to  make  full  and  complete  report  of  the  quantity  of  natural 
gas  used  by  them  to  the  department  of  conservation;  requir- 


STATUTES— WASTE  181 

ing  the  said  department  to  make  semi-annually  a  full  and  com- 
plete report  to  the  Governor  by  Parishes  of  the  natural  gas 
being  used  within  the  State,  the  waste  going  on  and  the  sit- 
uation as  to  the  future  supply  of  natural  gas  in  the  several 
Parishes,  and  likewise  make  such  report  to  the  President  of 
the  Police  Jury  of  each  Parish  in  which  natural  gas  is  pro- 
duced; requiring  the  District  Judges  of  the  several  parishes 
wherein  natural  gas  is  produced  to  charge  each  grand  jury 
with  the  duty  of  investigating  the  waste  of  natural  gas,  or 
the  use  being  made  of  natural  gas  in  a  manner  to  threaten 
with  premature  exhaustion  or  extinction  the  common  reser- 
voir of  such  natural  gas ;  and  providing  penalties  for  the  viola- 
tion of  the  provisions  of  this  act. 

Section  1.  Be  it  enacted  by  the  General  Assembly  of  the 
State  of  Louisiana,  That  it  shall  be  unlawful  to  permit  the 
waste  of  natural  gas,  or  to  use  natural  gas  for  any  purpose 
whatsoever  in  such  manner  as  will  threaten  with  premature 
exhaustion,  extinction  or  destruction  the  common  supply  or 
common  reservoir  from  which  said  natural  gas  is  drawn. 

Section  2.  Be  it  further  enacted,  etc.,  That  the  term  waste 
as  above  used  in  addition  to  its  ordinary  meaning,  shall  in- 
clude : 

(a)  Wantonly  or  wilfully  permitting  the  escape  of  nat- 
ural gas  in  commercial  quantities  into  the  open  air. 

(b)  The  intentional  drowning  with  water  of  a  gas  stratum 
capable  of  producing  gas  in  commercial  quantities. 

(c)  Underground  waste. 

(d)  Permitting  of  any  natural   gas  well  to  wastefully 
burn. 

Section  3.     Be  it  further  enacted,  etc.,  That  the  Depart- 


182  STATUTES— WASTE 

men  of  Conservation  is  granted  full  power  and  authority  to 
prevent  the  waste  of  natural  gas,  or  the  use  or  natural  gas  for 
any  purpose  whatsoever  in  such  quantities  as  will  threaten 
with  premature  exhaustion,  extinction  or  destruction  the  com- 
mon supply  or  common  reservoir  from  which  said  natural  gas 
is  drawn  by  preventing  the  flow  during  each  24  hours  from 
any  well  o  rmore  than  twenty-five  per  cent  of  the  potential 
capacity  thereof,  and  it  is  made  the  imperative  duty  of  the 
said  Department  of  Conservation  to  make  frequent  inspection 
and  investigation  of  the  natural  gas  fields  of  the  State  so  as 
to  carry  out  the  provisions  of  this  act,  and  if  any  waste  or  use 
of  natural  gas  in  quantities  to  threaten  with  premature  ex- 
haustion, extinction  or  destruction  the  common  reservoir  from 
which  the  natural  gas  is  being  drawn  is  found  to  exist  as  waste 
and  the  undue  use  of  natural  gas  has  heretofore  been  defined, 
the  said  Department  shall  proceed  at  once  to  prevent  or  stop 
the  waste  or  improper  use  of  such  natural  gas;  and  to  carry 
out  the  provisions  to  sue  out  and  injunction  without  giving 
bond  in  any  of  the  District  Courts  of  the  State  to  prevent  and 
prohibit  the  said  waste  of  natural  gas  or  the  use  or  manner  of 
use  of  natural  gas  in  such  quantities  as  to  threaten  with  pre- 
mature exhaustion,  extinction  or  destruction  the  common 
source  or  reservoir  from  wTiich  said  natural  gas  is  being  drawn 
as  waste,  and  the  undue  use  of  natural  gas  has  heretofore 
been  defined;  and  in  all  such  proceedings  it  shall  be  the  duty 
of  the  Attorney  General  of  Louisiana  to  appear  in  behalf  of 
said  Department,  which  injunction  shall  not  be  dissolved  on 
bond. 

Section  4.  Be  it  further  enacted,  etc.,  That  there  is  hereby 
granted  to  and  vested  in  the  Department  of  Conservation  the 
power  to  regulate  the  use  of  pumps,  compressors  and  other 
artificial  or  injurious  means  of  increasing  the  natural  flow. 


STATUTES— WASTE  183 

Section  5.  Be  it  further  enacted,  etc.,  That  every  person, 
association,  partnership  or  corporation  engaged  in  selling 
natural  gas  or  using  natural  gas  in  the  manufacture  of  any 
article  of  commerce,  or  for  fuel  in  manufacturing  enterprises, 
shall  make  semi-annual  reports  under  oath  to  the  Department 
of  Conservation  upon  blanks  to  be  furnished  by  the  Depart- 
ment showing  the  manner  of  use  and  quantities  of  natural  gas 
used  or  sold  as  aforesaid. 

Section  6.  Be  it  further  enacted,  etc.,  That  the  Department 
of  Conservation  shall  make  a  full  and  complete  report  semi- 
annually  to  the  Governor  of  the  situation  in  the  various  nat- 
ural gas  fields  within  the  State,  and  shall  likewise  file  with 
the  President  of  the  Police  Jury  of  each  Parish  within  which 
natural  gas  is  produced  a  statement  showing  the  situation 
concerning  the  present  and  future  supply  of  natural  gas  with- 
in such  year. 

Section  7.  Be  it  further  enacted,  etc.,  That  it  shall  be  the 
duty  of  the  District  Judges  in  those  Parishes  wherein  natural 
gas  is  produced  or  found,  to  charge  the  grand  juries  to  inquire 
into  the  waste  of  natural  gas,  or  the  use  being  made  of  natural 
gas  for  any  purpose  whatsoever  that  is  threatening  with  pre- 
mature exhaustion,  extinction  or  destruction  the  common 
source  or  reservoir  from  which  said  natural  gas  is  being 
drawn,  as  wraste  and  the  undue  use  of  natural  gas  has  hereto- 
foe  been  defined. 

Section  8.  Be  it  further  enacted,  etc.,  That  each  violation 
of  this  act  shall  be  punished  by  a  fine  of  not  less  than  one 
hundred  dollars  nor  more  than  five  hundred  dollars,  or  by 
imprisonment  for  not  less  than  thirty  days  nor  more  than  six- 
ty days,  or  both  in  the  discretion  of  the  court,  and  in  default 
of  the  payment  of  the  fine  imposed  by  imprisonment  for  any 
additional  time  not  exceeding  six  months,  and  each  day  this 


184  STATUTES— PURCHASERS  OF  GAS 

act  is  violated  shall  constitute  a  seperate  offense  hereunder 
after  written  notification  given  to  the  offender  by  authority 
of  the  said  Department  of  Conservation. 

Section  9.  Be  it  further  enacted,  etc.,  That  this  act  shall 
not  repeal  the  existing  laws  on  this  same  subject  matter  unless 
the  same  are  inconsistent  with  the  provisions  of  this  act. 

FERNAND  MOUTON, 
Lieutenant  Governor  and  President  of  the  Senate. 

HEWITT  BOUANCHAUD, 
Speaker  of  the  House  of  Representatives. 

Approved:  July  11,  1918. 

R.  G.  PLEASANT, 
Governor  of  the  State  of  Louisiana. 
A  true  copy : 

JAMES  J.  BAILEY, 

Secretary  of  State. 

Purchasers  of  Gas. 

ACT  No.  270  of  1918. 

Senate  Bill  No.  198.  By  Mr.  Leon  R.  Smith. 

AN  ACT. 

Looking  to  the  conservation  of  natural  gas  in  the  State; 
regulating  the  drilling  for  natural  gas,  its  extraction  from  the 
earth  and  marketing;  making  persons,  firms  or  corporations 
engaged  in  the  business  of  purchasing  and  selling  natural  gas 
in  the  state  common  purchasers  from  all  and  regulating  the 
manner  of  such  purchase  without  discrimination  excepting 
municipal  corporations  and  the  pipe  lines  and  distribution 
systems  of  corporations  the  direct  ownership  of  which  may 


STATUTES— PURCHASERS  OF  GAS  185 

revert  to  any  municipality ;  regulating  the  method  of  measur- 
ing gas  so  produced  and  purchased;  conferring  upon  the  Con- 
servation Commission  of  Louisiana  certain  powers  with  refer- 
ence to  such  boring,  extraction,  purchase  and  sale  of  such  nat- 
ural gas;  charging  said  Commission  with  the  enforcement  of 
this  Act;  charging  District  Attorneys  with  the  duty  of  bring- 
ing necessary  suits  to  enforce  this  Act  with  injunction  to  be 
issued  without  bond,  fixing  penalties,  etc. ;  providing  penalties 
for  the  violation  of  this  Act  and  to  repeal  all  laws  or  parts  of 
laws  in  conflict  with  the  provisions  of  this  Act. 

Section  1.  Be  it  enacted  by  the  General  Assembly  of  the 
State  of  Louisiana,  That,  in  order  to  further  conserve  the 
natural  gas  in  the  State  of  Louisiana,  whenever  the  full  pro- 
duction from  any  common  source  of  supply  of  natural  gas  in 
this  State  is  in  excess  of  the  market  demands,  then  any  per- 
son, firm  or  corporation  having  the  right  to  drill  into  and 
produce  gas  from  any  such  common  source  of  supply,  may 
take  therefrom  only  such  proportion  of  the  natural  gas  that 
may  be  marketed  without  waste,  as  the  natural  flow  of  the 
well  or  wells  owned  or  controlled  by  any  such  person,  firm  or 
corporation  bears  to  the  total  natural  flow  of  such  common 
source  of  supply  having  due  regard  to  the  acreage  drained  by 
each  well,  so  as  to  prevent  any  such  person,  firm  or  corpora- 
tion, securing  any  unfair  proportion  of  the  gas  therefrom; 
provided,  that  the  Conservation  Commission  of  Louisiana 
may  by  proper  order,  permit  the  taking  of  a  greater  amount 
whenever  it  shall  deem  such  taking  reasonable  or  equitable. 

Section  2.  Be  it  further  enacted,  etc.,  That  every  person, 
firm  or  corporation,  now  or  hereafter  engaged  in  the  business 
of  purchasing  and  selling  natural  gas  in  this  State,  shall  be 


186  STATUTES— PURCHASERS  OF  GAS 

common  purchaser  thereof,  and  shall  purchase  all  of  the  nat- 
ural gas  which  may  be  offered  for  sale  which  may  be  brought 
in  pipes  and  connecting  lines  by  the  owner  or  proposed  seller 
to  its  trunk  lines,  at  the  sellers  expense,  or  to  its  gathering 
lines,  without  discrimination  in  favor  of  one  producer  as 
against  another,  or  in  favor  of  any  one  source  of  supply  as 
against  another  save  as  authorized  by  the  Conservation  Com- 
mission of  Louisiana  after  due  notice  and  hearing,  but  if  any 
such  person,  firm  or  corporation  shall  be  unable  to  purchase 
all  the  gas  so  offered,  then  it  shall  purchase  natural  gas  from 
each  producer  ratably,  and  any  common  purchaser  of  gas 
shall  have  the  same  right  to  purchase  the  product  of  any  gas 
well  or  wells  that  are  not  being  utilized  under  the  conditions 
of  this  act;  and  in  the  event  the  owner  of  said  well  or  wells 
refuse  to  sell,  the  common  purchaser  shall  have  the  same  right 
of  action  against  such  owner  or  owners  as  the  seller  has 
against  the  common  purchaser  who  refuses  to  buy,  and  the 
seller  so  refusing  to  sell  shall  be  subject  to  the  same  penalties, 
etc.,  provided  against  the  common  purchaser  who  refuses  to 
buy.  This  act  shall  not  affect  in  any  way  a  municipal  cor- 
poration engaged  in  buying  and  selling  natural  gas,  the  direct 
ownership  of  which  shall  vest  in,  or  which  may  under  charter 
or  franchise  provisions  ultimately  vest  in  or  be  acquired  by 
any  municipality. 

Section  3.  Be  it  further  enacted,  etc.,  That  no  common  pur- 
chaser shall  discriminate  between  like  grades  and  pressures 
of  natural  gas,  or  in  favor  of  its  own  production  or  of  produc- 
tion in  which  it  may  be  directly  interested,  either  in  whole  or 
in  part,  but  for  the  purpose  of  prorating  the  natural  gas  to  be 
marketed,  such  production  shall  be  treated  in  like  manner  as 
that  of  any  other  producer  or  person,  and  shall  be  taken  only 


STATUTES— PURCHASERS  OF  GAS  187 

in  the  ratable  proportion  such  production  bears  to  the  total 
production  available  for  marketing. 

Section  4.  Be  it  further  enacted,  etc.,  That  all  gas  produced 
from  the  deposits  of  this  State  when  sold  shall  be  measured 
by  meter  and  the  Conservation  Commission  of  Louisiana 
shall,  upon  notice  and  hearing,  relieve  any  common  purchaser 
from  purchasing  gas  of  an  inferior  quality  or  grade,  and  the 
Commission  shall  from  time  to  time  make  such  regulations 
for  delivery,  metering  and  equitable  purchase  and  taking  as 
conditions  may  necessitate. 

Section  5.  Be  it  further  enacted,  etc.,  That  it  shall  be  the 
duty  of  the  Conservation  Commission  of  Louisiana  to  see  that 
the  provisions  of  this  Act  are  fully  and  properly  complied  with 
and  it  shall  further  be  the  duty  of  the  District  Attorney,  in 
whose  district  any  violation  takes  place,  on  application  of  the 
Conservation  Commission  of  Louisiana,  to  bring  such  suit  or 
suits  as  may  be  necessary  to  enforce  the  provisions  of  this  act 
and  any  injunction  which  may  be  necessary  shall  be  furnished 
without  bond. 

Section  6.  Be  it  further  enacted,  etc.,  That  any  person, 
firm  or  corporation  or  partnership  violating  any  of  the  pro- 
visions of  this  Act  shall  be  guilty  of  a  misdemeanor  and  on 
conviction  thereof  in  any  court  of  competent  jurisdiction  be 
liable  and  fined  not  less  than  $50.00  nor  more  than  $500.00 
or  be  subject  to  imprisonment  for  thirty  days  or  be  liable  to 
both  fine  and  punishment  in  the  discretion  of  the  court  for  each 
offense,  each  day's  continuation  of  such  violation  shall  be  and 
is  hereby  declared  to  be  a  separate  offense. 


188  STATUTES— CONSERVATION 

Section  7.  Be  it  further  enacted,  etc.,  That  all  laws  or  parts 
of  laws  in  conflict  herewith  be  and  the  same  are  hereby  re- 
pealed. 

FERNAND  MOUTON, 
Lieutenant  Governor  and  President  of  the  Senate. 

HEWITT  BOUANCHAUD, 
Speaker  of  the  House  of  Representatives. 

Approved:  July  11,  1918. 

R.  G.  PLEASANT, 
Governor  of  the  State  of  Louisiana. 
A  true  copy : 

JAMES  J.  BAILEY, 

Secretary  of  State. 

Conservation. 

ACT  No.  127  of  1912. 

House  Bill  No.  320.  By  Mr.  Buie. 

AN  ACT. 

To  create  and  establish  a  Conservation  Commission  of 
Louisiana,  defining  its  duties  and  powers  and  constituting  it 
a  department  of  the  Government ;  to  provide  for  the  necessary 
employees  and  defining  their  qualifications,  duties  and  powers 
in  relation  to  the  protection  of  birds,  fish,  shell  fish  and  wild 
quadrupeds;  forestry  and  mineral  resources  of  the  State;  to 
provide  for  the  payment  of  the  salaries  and  expenses  of  the 
said  Commission,  to  issue  licenses  and  levy  and  collect  the 
charges  thereon,  and  to  provide  for  the  revenues  to  maintain 
and  support  the  same;  to  provide  for  the  establishment  of 
public  and  private  preserves  and  propagating  grounds  for 


STATUTES— CONSERVATION  189 

game  and  fish;  to  authorize  the  Conservation  Commission 
herein  created  to  discharge  the  duties  and  functions  hereto- 
fore exercised  by  the  Board  of  Commissioners  for  the  protec- 
tion of  birds,  game  and  fish,  and  the  Conservation  Commis- 
sion heretofore  created,  and  the  duties  heretofore  assigned  to 
the  Department  of  Forestry  and  the  Department  of  Mining 
and  Minerals;  to  authorize  said  commission  to  represent  the 
aforesaid  other  commissions  either  as  defendant  in  any  litiga- 
tion that  might  be  pending;  to  provide  penalties  for  the  viola- 
tion of  this  act,  and  to  repeal  all  laws  or  parts  of  laws  in  con- 
flict with  or  inconsistent  with  the  provisions  of  the  act. 

Section  1.  Be  it  enacted  by  the  General  Assembly  of  the 
State  of  Louisiana,  That  the  conservation  Commission  is 
hereby  created,  composed  as  follows : 

Three  commissioners,  one  of  whom  shall  be  president  of 
said  Commission,  shall  be  appointed  by  the  Governor,  by  and 
with  the  advice  and  consent  of  the  Senate,  for  a  term  of  four 
years  and  shall  be  men  who  are  informed  in  whole,  or  in  part, 
on  the  following  subjects:  wild  life,  game  and  the  require- 
ments for  its  conservation,  oysters  and  salt  and  fresh  water 
fish  of  the  State,  and  the  forestry  and  mineral  resources  of 
the  State.  After  being  confirmed  by  the  Senate,  the  said  Com- 
missioners shall  not  be  subject  to  removal  by  the  Governor; 
they  shall  be  subject  to  removal  for  malfeasance,  nonfeasance, 
or  incompetency  upon  charges  made  before  a  court  of  compe- 
tent jurisdiction. 

The  said  commissioners  shall  have  the  supervision  and  con- 
trol over  all  employees  in  every  branch  of  the  service,  and 
shall  give  their  entire  time  to  the  service  and  shall  receive  a 
salary  not  to  exceed  twenty-four  hundred  dollars  per  annum 
payable  monthly,  except  the  president,  who  shall  receive  not 
to  exceed  three  thousand  dollars  per  annum,  payable  monthly, 


190  STATUTES— CONSERVATION 

and  shall  receive  actual  traveling  and  hotel  expenses  when 
engaged  in  the  discharge  of  thir  official  duties. 

The  Commission  shall  have  authority  to  pay  the  expenses  of 
any  of  its  employees,  officers  or  assistants  either  within  or 
without  the  State,  while  in  the  service  of  the  Commission.  The 
Commission  is  authorized  to  efficiently  transact  its  business 
and  promote  the  good  of  the  service,  and  fix  the  salaries  pro- 
vided that  the  total  expenses  for  this  purpose  shall  not  exceed 
$20,000  per  annum  for  clerical  and  all  office  and  traveling 
expenses,  and  provided  there  shall  not  be  any  attorney  other 
than  the  Attorney  General  to  represent  said  Commission. 

Section  2.  Be  it  further  enacted,  etc.,  That  the  Conserva- 
tion Commission  of  Louisiana  is  here  constituted  a  depart- 
ment of  the  State  government  for  the  purpose  of  the  protec- 
tion, management  ,and  conservation  of  the  oyster  fields  and 
water  bottoms  of  the  State;  to  protect  the  birds,  fish,  shell 
fish  and  wild  quadrupeds  of  the  State,  and  the  natural  and 
mineral  and  forestry  resources  of  the  State  and  to  see  that 
all  laws  relative  thereto  are  enforced,  and,  as  such,  it  is  hereby 
created  a  body  politic  or  political  corporation  invested  with 
all  powers  inherent  in  such  corporation. 

It  shall  have  authority  to  sue  and  be  sued  under  the  style 
"Conservation  Commission  of  Louisiana"  and  all  process 
against  said  corporation  shall  be  served  on  the  president,  or 
in  his  absence  on  any  member  of  the  said  Conservation  Com- 
mission, at  the  general  office  and  all  suits  in  its  behalf  shall 
be  brought  by  its  president  in  the  name  of  the  Commission. 
In  case  there  are  any  suit  spending  in  which  the  game,  fish 
and  oyster  commission,  or  the  Conservation  Commission  here- 
tofore created  are  parties  to  said  suit  either  as  plaintiff  or 
defendant  the  present  Conservation  Commission  created  by 


STATUTES— CONSERVATION  131 

this  act  shall  be  substituted  and  become  parties  to  said  litiga- 
tion in  lieu  of  the  former  commission,  which  shall  be  super- 
ceded  by  the  present  one.  The  domicile  of  said  corporation 
is  hereby  fixed  in  the  City  of  New  Orleans,  where  the  office 
shall  be  established,  and  where  its  archives  shall  be  kept,  and 
services  of  processes  shall  be  made  upon  the  president  or  other 
members  of  the  Commission  in  person. 

It  shall  be  the  duty  of  said  Commission  to  collect,  classify 
and  preserve  such  statistics,  data  and  information,  as  will  tend 
to  promote  the  objects  of  this  act  and  to  take  charge  of  and 
keep  all  records,  books  and  papers  and  documents  which  shall 
in  the  discharge  of  their  duties  hereunder  come  in  their  pos- 
session or  under  their  control;  to  make  and  execute  all  con- 
tracts, and  generally  to  do  and  perform  all  things  necessary 
to  carry  out  the  objects  of  this  act  subject  to  all  limitations 
and  duties  herein  provided. 

Said  commission  shall  adopt  by-laws  for  its  own  govern- 
ment and  the  government  of  its  employees,  it  shall  adopt  rules 
and  regulations  for  comprehensive  control  of  birds,  shell  fish, 
and  wild  quadrupeds,  and  mineral  and  soil  and  natural  re- 
sources of  the  State  which  said  by-laws  or  rules  and  regula- 
tions shall  not  be  inconsistent  with  our  contrary  to  the  pro- 
visions of  this  act. 

Any  person  in  interest  who  feels  aggrieved  by  any  such  rule 
or  regulation  shall  have  the  right  to  test  the  legality  of  the 
same  in  the  courts  of  the  State,  either  in  the  Court  of  the  juris- 
diction wherein  the  contest  arises,  or  at  the  domicile  of  the 
Commission. 

It  shall  be  the  duty  of  the  Commissioners,  at  each  regular 
meeting  to  examine  all  accounts  and  operations  of  the  Com- 
mission and  determine  what  work  shall  be  undertaken;  and 


192  STATUTES— CONSERVATION 

monthly  reports  thereof  shall  be  made  in  writing  to  the  Gov- 
ernor, and  condensed  quarterly  copies  of  said  monthly  reports 
shall  be  printed  in  one  morning  paper  in  the  City  of  New 
Orleans.  Said  Commission  shall  improve,  enlarge  and  pro- 
tect the  natural  oyster  reefs  of  this  State  as  conditions  may 
warrant  subject  to  the  provisions  stipulated  in  this  Act  and 
other  laws  not  herein  repealed,  provided  they  shall  not  lease 
any  of  the  natural  reefs  of  the  State.  It  shall  also  protect  arid 
propagate,  when  possible  all  species  of  birds)  and  game  of 
whatever  description  and  establish  preserves  and  hatcheries, 
to  be  maintained  and  operated  under  the  control  of  the  Com- 
mission, and,  it  shall  be  its  duty  to  rigidly  enforce  all  laws 
relative  to  the  bedding,  fishing,  selling,  shipping  and  canning 
of  oysters  and  of  all  laws  relative  to  the  protection  and  propa- 
gation and  selling  of  birds  and  game  and  of  all  laws  relative 
to  the  protection  and  propagation  and  sale  of  all  species  of 
fish  in  this  State  whether  they  shall  be  salt  water  or  fresh 
water  fish,  whether  they  shall  be  shell  fish  or  fish  of  any  other 
description  and  of  all  laws  relative  to  diamond-back  terrapin, 
shrimp,  and,  in  fact  shall  have  full  power  and  control  over 
birds  and  animals,  whether  they  be  game  or  fur-bearing  or 
not;  over  all  fish  whether  they  shall  be  salt  water  or  fresh 
water  fish;  over  diamond-back  terrapin  shrimp  and  oysters 
of  this  State  found  or  being  within  the  borders  of  this  State, 
or  within  any  of  the  waters  of  the  State,  whether  said  waters 
be  rivers,  lakes,  bayous,  lagoons,  bays  or  gulfs.  It  shall,  like- 
wise enforce  all  laws  relating  to  the  natural  mineral  and  for- 
estry resources  of  this  State.  It  shall  assist  in  protecting  all 
lessees  of  private  oyster  bedding  grounds  in  the  enjoyment  of 
their  rights,  and  shall  assist  in  the  protection  of  private  fish 
ponds  used  by  individuals  to  propagate  fish,  and  to  protect 
game  preserves  placed  under  the  control  of  the  State,  provided 
they  are  used  for  the  propagation  of  birds  and  game,  or  as 


STATUTES— CONSERVATION  193 

resting  places  for  game  or  birds,  and  to  see  that  said  preserves 
are  properly  posted  according  to  law.  And  said  Commission 
shall  in  every  way  possible  assist  in  developing  the  natural 
resources  of  the  State  under  its  jurisdiction  to  their  fullest 
proportions. 

Section  3.  Be  it  further  enacted,  etc.,  That  this  Commis- 
sion shall  have  power  and  authority,  in  its  name,  to  initiate 
and  prosecute  all  civil  actions  or  proceedings  arising  from  the 
violation  of  any  law,  the  administration  of  which  is  imposed 
upon  it.  And  it  shall  also  be  the  duty  of  said  Commission  to 
report  all  violations  of  the  criminal  laws  with  the  enforcement 
of  which  it  is  charged  to  the  District  Attorney  within  whose 
jurisdiction  such  infractions  occur,  and  see  that  such  cases  so 
reported  are  promptly  prosecuted  and  it  shall  be  the  duty  of 
the  District  Attorney  to  prosecute  all  such  actions  and  make 
report  of  such  prosecutions  to  the  Commission.  This  obliga- 
tion shall  be  mandatory  on  the  District  Attorney. 

Section  4.  Be  it  further  enacted,  etc.,  That  it  shall  be  the 
duty  of  said  Commission,  on  or  before  the  first  Monday  in 
April  of  each  year,  to  prepare  and  present  to  the  Governor 
of  the  State,  a  printed  annual  report  showing  the  operations 
of  the  Commission  since  the  date  of  its  last  annual  report, 
showing  the  amount  of  money  received  by  it  and  from  what 
sources,  the  amount  of  money  expended  by  it  and  for  what 
purpose,  and  in  each  annual  report  immediately  preceding  the 
regular  session  of  the  General  Assembly,  the  Commission 
shall  include  an  estimate  of  proposed  expenditures  and  ex- 
penses for  the  ensuing  two  years;  and  its  prospective  reve- 
nues and  such  recommendations  for  legislative  action  if  any 
the  Commission  may  deem  \vise  for  the  better  accomplish- 
ment of  the  purposes  of  this  act.  The  governor  shall  lay  copies 
of  said  report  before  the  General  Assembly  convening  after 


194  STATUTES— CONSERVATION 

their  receipt,  and  at  each  regular  session  the  General  Assem- 
bly shall  appropriate  such  funds  as  it  may  deem  wise,  for  the 
continuation  of  the  work  of  said  Commission.  A  fund  to  be 
known  as  the  "Conservation  Fund"  is  hereby,  established  and 
all  funds  collected  by  the  Conservation  Commission  as  herein 
provided  for  shall  be  paid  in  the  State  Treasury  to  the  credit 
of  said  fund,  a  record  of  said  payments  being  made  by  the 
State  Auditor,  and  acknowledgment  thereof  sent  to  the  Con- 
servation Commission,  that  all  expenditures  shall  be  made  out 
of  the  said  fund  by  the  warrant  of  the  said  Conservation  Com- 
mission drawn  on  the  State  Auditor,  which  warrant  shall  be 
signed  by  the  President  of  the  Conservation  Commission,  and 
countersigned  by  its  Secretary  and  said  State  Auditor  shall, 
in  turn,  issue  his  warrant  in  payment  thereof  on  the  State 
Treasurer,  said  Conservation  shall  keep  a  set  of  books  show- 
ing from  whom  every  dollar  is  received  and  for  what  purpose ; 
and  shall  keep  in  its  file  vouchers  or  receipts  for  all  moneys 
paid  out.  Any  surplus  funds  existing  after  the  current  annual 
expenses  are  provided  for  may  be  used  for  the  purpose  of 
game,  oyster  and  fish  propagation  and  conservation. 

Section  5.  Be  it  further  enacted,  etc.,  That  each  one  of 
said  Commissioners  shall  give  for  the  faithful  performance  of 
the  duties  of  his  office  a  bond  in  favor  of  the  Governor  of  the 
State  for  the  benefit  of  the  people  of  the  State  in  the  sum  of 
five  thousand  dollars  ($5,000.00)  and  each  employee  of  the 
said  Conservation  Commission  other  than  the  Commissioners, 
shall  give  a  similar  bond  for  the  faithful  performance  of  their 
duties  in  the  sum  of  one  thousand  dollars  ($1,000.00).  In 
case  of  forfeiture  of  any  of  said  bonds  and  recovery  on  same, 
theamount  recovered  shall  go  to  the  general  fund  of  the  Com- 
mission. 

Section  6.     Be  it  further  enacted,  etc.,  That  all  moneys, 


STATUTES— CONSERVATION  195 

machinery  and  other  property  of  whatever  kind  now  owned 
or  controlled  by  the  Board  of  Commissioners  for  the  protec- 
tion of  birds,  game  and  fish  of  the  State  of  Louisiana  is  here- 
by declared  to  be  the  property  of  the  State  of  Louisiana,  and 
is  hereby  transferred  to  the  control  of  the  Conservation  Com- 
mission of  Louisiana  and  the  said  Conservation  Commission 
of  Louisiana  is  hereby  required  to  assume  and  pay  all  valid 
bills  and  debts  owing  by  the  Board  of  Commissioners  for  the 
protection  of  birds,  fish  and  game  and  to  discharge  the  duties 
heretofore  discharged  by  said  board  and  not  otherwise  pro- 
vided for  herein,  and  to  prosecute  and  carry  on  all  actions 
heretofore  commenced  by  said  board,  and  to  enforce  all  laws, 
the  duty  of  enforceing  which  devolves  upon  said  Board  of 
Commissioners  for  the  protection  of  birds,  game  and  fish. 

Section  7.  Be  it  further  enacted,  etc.,  That  the  Conserva- 
tion Commission  shall  permit  no  salaried  officer  or  employee 
to  be  actively  interested  in  the  exploiting  for  personal  gain  of 
any  of  the  natural  resources  of  the  State,  or  to  be  employed 
by  any  person,  firm  or  corporation  engaged  in  the  exploiting 
of  any  of  the  natural  resources  of  the  State,  under  the  penalty 
of  dismissal  from  the  service  hereof  and  forfeiture  of  any 
rights  sought  to  be  acquired  by  said  officer  or  employees. 

Section  8.  Be  it  further  enacted,  etc.,  That  the  Conserva- 
tion Commission  shall  acquire  such  boats  and  other  property 
as  may  be  necessary  to  regulate  and  supervise  the  work  of 
said  commission,  and  as  soon  as  the  funds  become  available 
for  the  purpose,  the  Conservation  Commission  shall  establish 
suitable  armed  patrols  on  the  boundary  lines  between  the 
waters  of  Louisiana  and  Mississippi  to  prohibit  the  violation 
of  any  of  the  laws  of  this  State  relating  to  birds,  shell  fish  and 
wild  quadrupeds  of  this  State. 


196  STATUTES— CONSERVATION 

Section  9.  Be  it  further  enacted,  etc.,  That  it  shall  be  the 
duty  of  the  said  Conservation  agents  to  see  that  every  person 
hunting,  trapping,  seining,  shipping  or  dealing  in  any  way  in 
any  of  the  natural  resources  of  this  State  in  the  territory  as- 
signed to  each  agent  for  which  a  license  must  be  obtained  as 
hereinafter  provided  has  in  his  possession,  or  is  the  owner  of 
any  official  license  as  provided  by  law,  except  in  case  of  a 
resident  hunting  on  his  own  lands  or  on  lands  leased  for  agri- 
cultural purposes  or  on  lands  inside  the  ward  in  which  his 
domicile  is  located. 

Section  10.  Be  it  further  enacted,  etc.,  That  the  said  Con- 
servation Commission,  through  its  accredited  agents  shall 
have  power  to  search  or  examine  any  cold  storage  warehouse, 
boat,  store,  car,  conveyance,  vehicle,  fish  baskets  or  other  re- 
ceptacle for  birds,  fish,  shell  fish  or  wild  quadrupeds,  when 
they  have  good  cause  to  believe  that  any  law  for  the  protec- 
tion of  fish,  shell  fish,  birds  and  wild  quadrupeds  has  been 
violated,  and  it  shall  be  and  is  hereby  made  their  duty  to  im- 
mediately make  affidavit  against  the  suspected  violators. 

Section  11.  Be  it  further  enacted,  etc.,  That  the  Conserva- 
tion Commission  shall  have  power  to  appoint  competent  men 
throughout  the  State  to  be  known  as  "Special  Conservation 
Agents,"  who  shall  possess  all  rights  and  powers  given  by 
the  law  to  the  regular  Conservation  Agent  except  the  right 
to  search  without  warrants,  and  they  shall  be  subject  to  all 
requirements  and  regulations  both  of  the  law  and  the  rules  of 
the  Conservation  Commission,  provided  that  such  special  Con- 
servation Agent  shall  be  in  no  way  entitled  to  recompense  from 
either  the  parish,  or  state  or  commission  for  services  rendered 
or  expenses  incurred  in  the  performance  o  ftheir  duty.  All 
sheriffs,  constables  and  peace  officers  shall  have  the  power 
as  Conservation  Agent  under  this  section  except  the  right  to 


STATUTES— CONSERVATION  197 

search  without  warrant,  and  shall  receive  one-half  of  all  fines 
collected  for  violation  of  the  Game  and  Conservation  Laws  of 
this  State  that  may  be  reported  by  them. 

Section  12.  Be  it  further  enacted,  etc.,  That  all  salaries 
and  other  expenses  of  said  Conservation  Commission  are  to 
be  paid  by  warrant  of  the  Conservation  Commission  of  Louisi- 
ana drawn  on  the  State  Auditor,  which  warrant  shall  be  signed 
by  the  President  of  the  Conservation  Commission  and  coun- 
tersigned by  its  Secretary,  and  the  State  Auditor,  shall,  as 
hereinbefore  provide,  issue  his  warrant  on  the  State  Treas- 
urer in  payment  thereof,  said  payment  to  be  made  from  the 
funds  collected  by  the  sale  of  hunting  licenses,  or  forfeiture 
of  bonds  and  fro  mall  money  which  may  be  appropriated  by 
the  General  Assembly  for  the  use  of  the  Conservation  Com- 
mission and  from  all  revenues  derived  from  oysters  and 
shrimp  licenses  and  tax,  or  licenses  for  the  trapping  of  fur- 
bearing  animals  and  licenses  on  fish  seines,  boats,  diamond- 
back  terrapin,  and  from  other  sources.  All  fines  derived  from 
convictions  of  the  violations  of  the  Conservation  laws  of  this 
State,  except  as  may  be  herein  otherwise  provided  less  the 
sheriff's  per  cent  for  collection  provided  by  law,  shall  be  paid 
to  the  treasurer  of  the  school  funds  for  the  use  of  the  public 
schools  in  the  parish  in  which  the  violation  occurred. 

Section  13.  Be  it  further  enacted,  etc.,  That  the  Conserva- 
tion Commission  of  the  State  of  Louisiana,  during  the  month 
of  June  of  each  year,  shall  send  to  the  tax  collector  of  each 
parish  of  the  State,  a  book  or  books  containing  a  regularly 
numbered  series  of  official  hunting  and  trapping  licenses 
bearing  the  facsimile  signature  of  the  President  of  the  Com- 
mission, which  license  shall  be  issued  by  the  said  tax  collec- 
tors to  all  persons  applying  for  same  at  the  rate  of  fifty  cents 
for  all  residents  hunting  in  their  own  parish  outside  the  limits 


198  STATUTES— CONSERVATION 

of  the  wards  in  which  thei  rdomicile  is  located  and  three  dol- 
lars for  all  not  residents  and  unnaturalized  foreign-born  resi- 
dents hunting  on  their  own  land,  and  ten  dollars  for  persons 
who  hunt  for  profit  and  are  commonly  known  as  "market 
hunters,"  except  that  non-residents  of  unnaturalized  foreign- 
born  residents  shall  not  be  permitted  to  hunt  or  trap  for  profit. 
On  the  first  of  each  month,  the  tax  collector  shall  make  return 
to  the  Treasurer  of  the  State  of  Louisiana  in  cash  accom- 
panied by  a  proper  report  of  all  licenses  that  have  been  issued, 
less  five  per  cent  of  the  sum  collected,  which  amount  is  to  be 
deducted  in  full  payment  of  their  services  in  issuing  said 
licenses;  and,  at  the  same  time,  said  tax  collectors  must  for- 
ward to  the  Conservation  Commission  duplicates  of  such  re- 
ports. The  Conservation  Commission  shall  deposit  with  the 
State  Treasurer  all  funds  and  monies  as  received  from  the 
tax  collector  and  proper  records  of  said  deposits  shall  be  en- 
tered on  their  books  covered  by  receipts  or  vouchers  of  the 
State  Treasurer. 

Section  14.  Be  it  further  enacted,  etc.,  That  no  person  shall 
at  any  time  hunt,  pursue,  or  kill  with  a  gun  any  of  the  wild 
quadrupeds  or  birds  that  are  protected  during  any  part  of  the 
year,  or  take  with  traps  or  other  devices  without  first  having 
procured  a  license  to  do  so,  and  then  only  during  the  respec- 
tive periods  of  the  year  when  it  shall  be  lawful. 

Section  15.  Be  it  further  enacted,  etc.,  That  the  Conser- 
vation Commission  is  hereby  empowered  to  accept  from  any 
persons,  firm,  corporation,  State  or  Federal  Government,  any 
lands  or  waters  suitable  for  game  and  fish  preserves  and  to 
provide  such  rules  and  regulations  not  contrary  to  law,  for 
the  Conservation  of  the  birds,  game  and  fish  found  thereon. 

Section  16.  Be  it  further  enacted,  etc.,  That  the  Conser- 
vation Commission  shall  employ  at  a  salary  not  to  exceed 


STATUTES— CONSERVATION  199 

eighteen  hundred  dollars  per  year  and  traveling  expenses 
necessarily  incurred  by  him  in  the  discharge  of  his  official 
duties,  not  to  exceed  seven  hundred  dollars  per  year,  a  sur- 
veyor whose  duty  it  shall  be  to  mark  the  boundaries  of  all 
oyster  bottoms  leased  by  the  State  to  private  individuals. 

Section  17.  Be  it  further  enacted,  etc.,  That  the  Commis- 
sion may  adopt  all  needful  rules  and  regulations  necessary  for 
a  proper  and  intelligent  administration  and  enforcement  of 
the  State  Laws  relating  to  fish,  game  and  wild  quadrupeds. 

Section  18.  Be  it  further  enacted,  etc.,  That  In  all  cases  of 
arrest  for  violation  of  the  game  and  fish  laws  of  the  State  the 
possession  of  the  game,  fish,  or  nets  or  seines,  or  lines,  or  the 
possession  or  operation  of  any  other  device  herein  prohibited 
shall  be  prima  facie  evidence  of  the  violation  of  this  act. 

Section  19.  Be  it  further  enacted,  etc.,  That  the  Conserva- 
tion Commission  may  take  fish  of  any  kind,  when,  where,  and 
in  such  manner  as  may  be  necessary  for  the  purpose  of  science 
and  of  cultivation  and  distribution,  and  they  may  grant  writ- 
ten permits  to  other  persons  for  the  same  purpose,  and  may 
introduce  or  premit  to  be  introduced  any  kind  of  fish  into  any 
waters.  They  may,  after  a  hearing,  set  apart  for  a  term  not 
exceeding  ten  years,  any  waters  in  the  State  for  the  purpose 
of  propagation,  or  for  the  use  of  the  United  States  Bureau  of 
Fisheries.  The  order  setting  apart  such  waters  shall  be  re- 
corded in  the  registry  of  deeds  of  the  parish  in  which  they  are 
situated.  They  may  erect  and  maintain  such  fixtures  as  are 
necessary  for  the  purpose  of  propagation  and  maintenance. 

Section  20.  Be  it  further  enacted,  etc.,  That  it  shall  be  un- 
lawful for  any  person  to  wilfully  enter  in  or  upon  any  build- 
ing or  other  structure  of  any  area  of  land  or  water,  set  apart 
and  used  by  scientific  experiments  and  distribution  of  fish, 


200  STATUTES — CONSERVATION 

birds  or  game  after  said  commission  has  printed  notices  of 
such  occupation  and  use  and  the  purposes  thereof,  to  be  placed 
in  a  conspicuous  position  adjacent  to  any  such  areas  of  land 
or  water  or  upon  any  such  building  or  other  structure  or  to 
wilfully  and  maliciously  injure  or  deface  any  such  building, 
or  other  notice  posted  as  aforesaid,  or  injure  or  destroy  any 
property  used  in  such  experiments  or  investigation  or  other- 
wise interfere  therewith. 

Section  21.  Be  it  further  enacted,  etc.,  That  the  Conser- 
vation Commission  may  purchase  from  persons,  firms  or  cor- 
porations, fish  row  or  fish  eggs,  giving  in  exchange  or  in  con- 
sideration thereof  a  per  centum  of  the  young  fish  hatched  or 
produced  at  any  of  the  fish  hatcheries  of  the  State  for  the  eggs 
so  purchased;  and  the  placing  of  such  young  fish  in  waters 
on  the  land  of  such  persons;  firms  or  corporations  shall  not 
be  deemed  a  stocking  of  such  waters  with  fish  by  the  State. 

Section  22.  Be  it  further  enacted,  etc.,  That  no  wild  animal 
or  fowl  or  spawn  or  fish  of  any  species  from  without  the 
State  shall  be  liberated  within  the  State  except  upon  written 
permission  of  thhe  oCnservation  Commission. 

Section  23  .  Be  it  further  enacted,  etc.,  That  the  Conserva- 
tion Commission,  upon  the  petition  of  the  police  jury  of  a  par- 
ish, may  stock  the  hwaters  of  any  stream,  bayou,  lagoon,  lake 
or  river,  with  such  fish  as  they  judge  to  be  the  best  suited  to 
such  waters.  The  Commission  may  thereupon  prescribe  for 
a  period  not  exceeding  three  years,  such  reasonable  regula- 
tions relative  to  the  fishing  in  such  streams  and  tributaries  as 
they  deem  to  be  for  theh  public  interest,  and  shall  cause  such 
regulations  to  be  enforced. 

Section  24.  Be  it  further  enacted,  etc.,  That  whenever 
they  deem  it  for  the  best  interest  of  the  State,  the  Conserva- 


STATUTES— CONSERVATION  201 

tion  Commission  may  entirely  prohibit  the  taking  of  any  kind 
of  fresh  water  fish  in  any  part  of  the  State,  for  a  series  of 
years  not  exceeding  three.  They  may  adopt,  and  from  time 
to  time  modify  or  repeal  such  needful  rules  and  regulations 
not  contrary  to  the  laws  of  the  State,  as  they  may  deem  neces- 
sary or  proper  for  the  protection  and  preservation  of  the  Fish 
of  the  State. 

Section  25.  Be  it  further  enacted,  etc.,  That  the  Conserva- 
tion Commission  hereby  created  shall  be  charged  with  the  duty 
of  carrying  out  the  provisions  of  Act  189  of  1910,  and  by  any 
other  laws  on  the  subject  of  the  oyster  industry,  insofar  as 
they  are  not  in  conflict  with  the  provisions  of  this  Act,  and 
said  Conservation  Commission  shall  to  that  extent  discharge 
the  functions  heretofore  exercised  by  the  Board  of  Commis- 
sioners for  the  Protection  of  Birds,  Game  and  Fish. 

Section  26.  Be  it  further  enacted,  etc.,  That  the  Conser- 
vation Commission  hereby  created  shall  be  charged  with  the 
duties  of  carrying  out  the  provisions  of  Act  172  and  196  of 
1910,  and  any  other  laws  on  the  subject  of  the  Conservation 
of  the  natural  mineral,  soil  and  forestry  resources  of  this  State 
insofar  as  they  are  not  in -conflict  with  the  provisions  of  this 
Act,  and  the  Conservation  Commission  hereby  created  shall 
to  that  extent  discharge  the  functions  heretofore  exercised 
by  the  Conservation  Commission  created, by  Act  172  of  1910. 

Section  27.  Be  it  further  enacted,  etc.,  That  the  Conserva- 
tion Commission  hereby  created  shall  be  charged  with  the  duty 
of  carrying  out  the  provisions  of  Act  No.  261  of  1910,  amend- 
ing and  re-enacting  Act  No.  113  of  1904,  and  the  service  of 
the  other  officials  mentioned  in  said  act  are  hereby  dispensed 
with,  the  same  being  placed  under  the  exclusive  control  and 
administration  of  the  Conservation  Commission  hereby  cre- 
ated. 


202  STATUTES— CONSERVATION 

Section  28.  Be  it  further  enacted,  etc.,  That  any  person 
violating  any  of  the  provisions  of  this  act,  where  a  punish- 
ment has  not  been  otherwise  provided,  shall  be  guilty  of  a 
misdemeanor,  and  upon  conviction  thereof  by  any  court  of 
competent  jurisdiction,  shall  be  liable  to  a  fine  o  fnot  less  than 
twenty-five  dollars  ($25.00)  nor  more  than  one  hundred  dol- 
lars ($100.00)  or  be  subject  to  imprisonment  for  not  less  than 
thirty  (30)  days,  or  be  liable  to  both  fine  and  imprisonment 
in  the  discretion  of  the  court. 

Section  29.  Be  it  further  enacted,  etc.,  That  all  laws  or 
parts  of  laws  in  conflict  herewith  be,  and  the  same  are  hereby 
repealed. 

L.  E.  THOMAS, 
Speaker  of  the  House  of  Representatives. 

THOMAS  C.  BARRETT, 
Lieutenant  Governor  and  President  of  the  Senate. 

Approved:  July  9th,  1912. 

L.  E.  HALL, 
Governor  of  the  State  of  Louisiana. 

A  true  copy : 

ALVIN  E.  HEBERT, 

Secretary  of  State. 


STATUTES— CONSERVATION  203 

Conservation. 

ACT  No.  66  of  1916. 

House  Bill  No.  175.  By  Mr.  Powell. 

AN  ACT. 

To  amend  and  re-enact  Section  1  of  Act  No.  127  of  the  Acts 
of  the  General  Assembly  of  1912,  entitled:  "An  Act  to  create 
and  establish  a  Conservation  Commission  of  Louisiana,  defin- 
ing its  duties  and  powers  and  constituting  it  a  department  of 
the  Government;  to  provide  for  the  necessary  employees  and 
defining  their  qualification,  duties  and  powers  in  relation  to 
the  protection  of  birds,  fish,  shell  fish  and  wild  quadrupeds; 
forestry  and  mineral  resources  of  the  State;  to  provide  for 
the  payment  of  the  salaries  and  expenses  of  the  said  Commis- 
sion, to  issue  licenses  and  levy  and  collect  the  charges  thereon, 
and  to  provide  for  the  revenues  to  maintain  and  support  the 
same;  to  provide  for  the  establishment  of  public  and  private 
preserves  and  propagating  grounds  for  game  and  fish;  to 
authorize  the  Conservation  Commission  herein  created  to  dis- 
charge the  duties  and  functions  heretofore  exercised  by  the 
Board  of  Commissioners  for  the  protection  of  birds,  game  and 
fish,  and  the  Conservation  Commission  heretofore  created, 
and  the  duties  heretofore  assigned  to  the  Department  of  For- 
estry and  the  Department  of  Mining  and  Minerals ;  to  author- 
ize said  commission  to  represent  the  aforesaid  other  commis- 
sions either  as  defendant  in  any  litigation  that  might  be  pend- 
ing; to  provide  penalties  for  the  violation  of  this  Act,  and  to 
repeal  all  laws  or  parts  of  laws  in  conflict  with  or  inconsistent 
with  the  provisions  of  the  Act. 

Section  1.     Be  it  enacted  by  the  General  Assembly  of  the 


204  STATUTES— CONSERVATION 

State  of  Louisiana,  That  Section  1  of  Act  No  .127  of  the  Acts 
of  the  General  Assembly  of  1912,  approved  July  9th,  1912,  be 
amended  and  reenacted  so  as  to  read  as  follows :  Be  it  enacted 
by  the  General  Assembly  of  the  State  of  Louisiana,  that  the 
"Department  of  Conservation"  is  hereby  created.  It  shall  be 
directed  and  controlled  by  an  officer  to  be  known  as  "Com- 
missioner of  Conservation."  The  said  Commissioner  shall  be 
appointed  by  the  Governor,  by  and  with  the  advice  and  con- 
sent of  the  Senate,  for  a  term  of  four  years,  and  he  shall  be 
informed,  in  whole  or  in  part,  on  the  subject  of  wild  life,  game 
and  fish,  and  the  requirements  for  their  conservation,  oysters, 
salt  and  fresh  water  fish  of  the  State,  and  the  forestry  and 
mineral  resources  of  the  State.  The  said  Commissioner  shall 
be  subject  to  removal  by  the  Governor.  He  shall  have  super- 
vision and  control  over  all  employees  in  every  branch  of  the 
service.  He  shall  receive  a  salary  of  thirty-six  hundred  dol- 
lars ($3,600)  per  annum,  payable  monthly,  and  shall  receive 
his  actual  traveling  and  hotel  expenses  when  engaged  in  the 
discharge  of  his  official  duties  away  from  the  domicile  of  the 
Department.  He  shall  have  authority  to  pay  the  expenses  of 
its  employees,  either  within  or  without  the  State,  while  in  the 
service  of  the  Department,  but  such  expenditures  and  his  sal- 
ary  shall  never  exceed  the  amount  of  the  revenues  available 
for  the  use  of  said  Department ;  and  provided,  there  shall  not 
be  any  attorney  other  than  the  Attorney  General  paid  to  rep- 
resent the  said  Department;  that  the  Commissioner  herein 
provided  for  shall  fully  represent  the  Department  of  Conser- 
vation and  discharge  all  the  obligations  and  duties  heretofore 
devolving  upon  the  three  members  of  the  Conservation  Com- 
mission ;  it  being  the  intent  and  purpose  of  this  Act  to  reduce 
the  Commission  to  one  head,  who  shall  be  Superintendent  and 
General  Manager  of  all  of  the  affairs  properly  coming  within 
its  supervision;  and  to  place  in  said  Department  of  Conserva- 


STATUTES— CONSERVATION  205 

tion  all  the  duties,  authority,  power,  privilege  and  jurisdiction 
of  the  Conservation  Commission. 

Section  2.  Be  it  further  enacted,  etc.,  That  all  laws  and 
parts  of  laws  in  conflict  herewith  be  and  the  same  are  hereby 
repealed. 

HEWITT  BOUANCHAUD, 
Speaker  of  the  House  of  Representatives. 

FERNAND  MOUTON, 

Lieutenant  Governor  and  President  of  the  Senate. 
Approved:  June  30th,  1916. 

R.  G.  PLEASANT, 
Governor  of  the  State  of  Louisiana. 
A  true  copy: 

JAMES  J.  BAILEY, 

Secretary  of  State. 

Conservation. 

ACT  No.  105  of  1918. 

House  Bill  No.  121.  By  Mr.  Ashford. 

AN  ACT. 

To  amend  and  re-enact  Section  1,  8  and  10  of  Act  127  of 
1912,  as  amended  by  Act  66  of  1916  and  Act  45  of  1916,  en- 
titled : 

To  create  and  establish  a  Department  Conservation,  de- 
fining its  duties  and  powers  and  constituting  it  a  department 
of  the  Government  to  provide  for  necessary  employees  and 
defining  their  qualifications,  duties  and  powers  in  relation  to 
the  protection  of  birds,  fish,  shell  fish  and  wild  quadrupeds; 
forestry  and  mineral  resources  of  the  State;  to  provide  for 
the  payment  of  the  salaries  and  expenses  of  the  said  Commis- 
sion, to  issue  licenses  and  levy  and  collect  the  charges  thereon, 


206  STATUTES— CONSERVATION 

and  to  provide  for  the  revenues  to  maintain  and  support  the 
same;  to  provide  for  the  establishment  of  public  and  private 
preserves  and  propagating  grounds  for  game  and  fish;  to 
authorize  the  Conservation  Commission  herein  created  to  dis- 
charge the  duties  and  functions  heretofore  exercised  by  the 
Board  of  Commissioners  for  the  protection  of  birds,  game  and 
fish,  and  the  Conservation  Commission  heretofore  created  and 
the  Department  of  Mining  and  Minerals,  to  autorize  said 
commission  to  represent  the  aforesaid  other  commission  either 
as  defendant  or  plaintiff  in  any  litigation  that  be  pending;  to 
provide  penalties  for  the  violation  of  this  Act,  and  to  repeal 
all  laws  or  parts  of  laws  in  conflict  with  or  inconsistent  with 
the  provisions  of  the  act. 

Section  1.  Be  it  enacted  by  the  General  Assembly  of  Louisi- 
ana, that  Section  1  of  Act  127  of  1912,  as  amended  by  Act 
66  of  1916,  be  and  the  same  is  hereby  amended  and  re-enacted 
to  read  as  follows : 

"That  the  'Department  of  Conservation'  is  hereby  created. 
It  shall  be  directed  and  controlled  by  an  officer  to  be  known 
as  'Commissioner  of  Conservation.'  The  Commissioner  shall 
be  appointed  by  the  Governor,  by  and  with  the  advice  and 
consent  of  the  Senate,  for  a  term  of  four  years,  and  he  shall 
be  informed,  in  whole  or  in  part,  on  the  subject  of  wild  life, 
game  and  fish  and  the  requirements  for  their  conservation, 
oysters,  salt  and  fresh  water  fish  of  the  State,  and  the  fores- 
try and  mineral  resources  of  the  State.  The  said  Commis- 
sioner shall  be  subject  to  removal  by  the  Governor.  He  shall 
have  supervision  and  control  over  all  employees  in  every 
branch  of  the  service,  and  shnll  give  his  entire  time  to  the 
service.  He  shall  receive  a  salary  of  four  thousand  ($4,000.00) 
dollars  per  annum,  payable  monthly  and  shall  receive  such 
expenses  as  are  necessary  when  engaged  in  the  discharge  of 
his  official  duties.  He  shall  have  authority  to  pay  the  ex- 


STATUTES— CONSERVATION  207 

penses  of  its  employees,  either  within  or  without  the  state, 
while  in  the  service  of  the  department  but  such  expendici'rs 
and  his  salary  shall  never  exceed  the  amount  of  the  revenues 
available  for  the  use  of  said  department;  and  provided  there 
shall  not  be  any  attorney  other  than  the  Attorney  General 
paid  to  represent  the  said  department ;  that  the  Commissioner 
herein  provided  for  shall  fully  represent  the  Department  of 
Conservation  and  discharge  all  the  obligations  and  duties 
heretofore  devolving  upon  the  three  members  of  the  Conser- 
vation Commission:  it  being  the  intent  and  purpose  of  this 
Act  to  reduce  the  Commission  to  one  head  who  shall  have  full 
charge  of  all  the  affairs  properly  coming  within  its  super- 
vision: and  to  place  in  said  Department  of  Conservation  all 
the  duties,  authority,  power,  privilege  and  jurisdiction  of  the 
Conservation  Commission." 

Section  2.  Be  it  further  enacted,  etc.,  That  section  8  of  Act 
127  of  1912,  be  and  the  same  is  hereby  amended  and  re-enacted 
to  read  as  follows: 

"That  the  Commissioner  of  Conservation  shall  require  such 
boats  and  other  movable  property  as  may  be  necessary  to 
regulate  and  supervise  the  work  of  the  said  Department  of 
Conservation,  and  shall  establish  suitable  armed  patrols  on  the 
waters  of  the  State  or  on  the  land,  to  prevent  the  violation  of 
any  of  the  conservation  laws  of  the  State  relating  to  birds, 
wild  quadrupeds,  and  other  game,  fish,  shall  fish,  oysters, 
forests,  mines  and  minerals,  and  waterbottoms ;  and  shall 
have  the  power  to  appoint  competent  men  throughout  the 
State  to  be  known  as  "Conservation  Agents,"  with  the  author- 
ity to  carry  arms  concealed  while  in  the  performance  of  their 
duties,  who  shall  have  full  power  under  the  law  to  enforce  all 
laws  for  the  protection  of  the  natural  resources  of  the  State." 

Section  3.  But  it  further  enacted,  etc.,  That  Section  10  of 
Act  127  of  1912  be  amended  and  re-enacted  to  read  as  follows: 


208  STATUTES— PURCHASERS  OF  OIL 

"That  the  said  Department  of  Conservation,  through  its 
officers,  inspectors,  and  agents  shall  have  full  power  to  search 
or  examine  any  cold  storage  warehouse,  boat,  store,  car,  con- 
veyance, vehicle,  fish  basket  ,or  other  receptacle  for  birds,  fish, 
shell  fish,  game  or  wild  quadrupeds,  when  they  shall  have  good 
cause  to  believe  that  any  law  for  the  protection  of  birds,  fish, 
shell  fish,  game,  or  wild  quadrupeds  has  been  violated;  that 
they  shall  enforce  all  laws  for  the  protection  of  the  other  nat- 
ural resources  of  the  state,  and  it  shall  be  and  is  hereby  made 
their  duty  to  arrest  and  immediately  make  affidavit  against 
the  suspected  violators." 

Section  4.  Be  it  further,  enacted,  etc.,  That  all  laws  or  parts 
of  laws  in  conflict  herewith  be  and  the  same  are  hereby  re- 
pealed. 

HEWITT  BOUANCHAUD, 
Speaker  of  the  House  of  Representatives. 

FERNAND  MOUTON, 
Lieutenant  Governor  and  President  of  the  Senate. 

Approved:  July  5,  1918. 

R.  G.  PLEASANT, 
Governor  of  the  State  of  Louisiana. 
A  true  copy : 

JAMES  J.  BAILEY, 

Secretary  of  State. 

Conservation — Purchasers  of  Oil. 

ACT  No.  73  of  1920. 
House  Bill  No.  122.  By      Mr.  Tanner. 

AN  ACT. 
To  conserve  the  oil  resources  of  the  State  and  to  secure  to 


STATUTES— PURCHASERS  OF  OIL  201) 

each  party  entitled  thereto  an  opportunity  to  sell  his  fair  share 
of  the  oil  produced  in  a  common  pool  and  to  such  end  to  pre- 
vent any  person,  firm,  association  or  persons  or  corporation 
engaged  in  the  business  of  purchasing  crude  petroleum  from 
the  producer  from  discriminating  in  such  purchase  during  a 
condition  of  ever-production ;  vesting  the  Commissioner  of 
Conservation  of  Louisiana  with  jurisdiction  to  appoint  a  su- 
pervisor for  such  field  while  such  condition  continues,  with 
authority  to  make  rules  and  regulations  governing  such  pur- 
chases, and  likewise  conferring  on  said  Commission,  JMris- 
diction  to  exercise  the  other  powers  hereby  vested  in  it ;  mak- 
ing violation  of  any  order  of  the  Commissioner  o  rof  any  rule 
or  regulation  of  such  supervisor,  legally  issued  hereunder,  a 
misdemeanor  and  providing  penalties  therefor. 

Section  1.  Be  it  enacted  by  the  General  Assembly  of  the 
State  of  Louisiana  that  during  a  period  of  over-production  in 
any  oil  field,  it  shall  be  the  duty  of  the  buying  agencies  to  ac- 
cord to  each  producer  an  opportunity  to  sell  that  proportion 
of  the  oil,  taken  by  such  buying  agencies,  as  the  potential  pro- 
duction of  oil  from  the  wells  of  such  producer  bears  to  the 
potential  production  thereof  from  all  of  the  wells  in  such 
field.  However,  nothing  in  this  act  shall  be  construed  as  com- 
pelling the  owner  of  any  pipe  line  to  construct  a  pipe  line  for 
the  purpose  of  reaching  the  well  of  any  producer.  In  provid- 
ing for  the  amount  of  oil  to  fill  their  requirements  such  buying 
agencies  shall  not  take  any  larger  percentage  of  the  potential 
production  of  themselves,  or  of  persons  affiliated  with  them 
or  under  the  same  management  or  control,  than  they  offer 
to  purchase  of  the  potential  production  of  other  producers; 
provided  that  nothing  herein  is  intended  to  compel  any  buying 
agency  to  purchase  oil  in  larger  quantities  or  at  a  higher  price 
than  it  desires;  or  to  compel  any  producer  to  sell  unless  he 
shall  wish  to  do  so;  or  to  prevent  any  producer  from  storing 


210  STATUTES— PURCHASERS  OF  OIL 

oil  by  him  produced,  if  he  desires,  but  the  amount  so  stored 
shall  be  deducted  from  the  ratable  share  which  such  producer 
may  require  purchasing  agencies  to  take  under  the  j revisions 
of  this  act. 

Section  2.  Be  it  further  enacted,  etc.,  That  the  provisions 
of  this  act  shall  not  apply  to  any  purchaser  buying  oil  in  quan- 
tities of  less  than  five  hundred  (500)  barrels  per  day  and  who 
transports  such  oil  through  his  own  facilities. 

Section  3.  Be  it  further  enacted,  etc.,  That  upon  a  repre- 
sentation in  writing  and  under  oath  by  any  person  to  the  con- 
servation commissioner  of  Louisiana  that  there  exists  a  con- 
dition of  over-production  in  any  oil  field  in  this  State,  said 
Commissioner  shall  hold  a  public  hearing  thereon,  after  two 
days'  notice  of  such  hearing  published  in  two  daily  news- 
papers that  are  published  nearest  the  oil  field  affected  and  by 
notice  posted  on  the  Court  House  door  of  the  Parish  in  which 
such  oil  field  is  located.  If  the  Commissioner  shall  determine 
at  such  hearing  that  there  does  exist  such  condition,  he  shall 
appoint  a  supervisor  to  serve  in  such  field  during  the  period 
of  over-production.  If  those  producing  oil  in  such  field  and 
the  buying  agencies  therein,  or  those  producing  oil  in  such 
field  and  the  buying  agencies  therein,  or  a  large  part  of  both 
such  producers  and  buying  agencies,  shall  unite  in  a  recom- 
mendation to  said  Commissioner  for  the  appointment  as  sup- 
ervisor of  a  citizen  of  this  State,  and  also  give  to  such  Com- 
missioner assurance  to  him  satisfactory  for  the  payment  of 
the  salaries  and  expenses  of  such  supervisor  and  his  assis- 
tants, then  the  Commissioner  shall  appoint  as  supervisor  the 
party  so  recommended,  if  in  the  judgment  of  said  Commis- 
sioner he  be  competent  and  trustworthy.  Except  as  stated, 
the  Commissioner  shall  have  absolute  discretion  in  the  selec- 
tion of  such  supervisor  and  in  the  fixing  of  his  salary  at  any 
sum  not  to  exceed  five  hundred  ($500.00)  dollars  per  month. 


STATUTES— PURCHASERS    OF   OIL  211 

Unless  paid  in  the  manner  above  indicated  the  salaries  and 
expenses  of  the  supervisor  and  his  assistants  shall  be  paid  by 
the  Commissioner  of  Conservation.  The  said  Commissioner 
shall  also  have  power  to  remove  any  such  supervisor  and  ap- 
point his  successor  whenever  he  may  deem  such  to  be  advis- 
able. It  shall  be  the  duty  of  said  Supervisor,  whenever  he 
may  think  it  to  be  necessary  or  the  Commissioner  may  order, 
to  ascertain,  by  actual  gauge  or  otherwise,  the  amount  of  the 
potential  production  from  the  wells  drilled  and  the  quantities 
of  oil  which  the  buying  agencies,  will  from  time  to  time  take 
therefrom  to  fill  their  requirements,  and  to  prescribe  rules 
and  regulations  so  as  to  accord  to  each  producer  an  opportun- 
ity to  sell  his  ratable  share  of  such  requirements  on  the  basis 
as  specified  in  Section  1  above.  Subject  to  review,  modifica- 
tion, amendment,  or  annulment  as  hereinafter  provided,  all 
the  producers  of  oil  in  such  field  and  the  agencies  buying  oil 
therein  shall  comply  with  and  observe  such  rules  and  regu- 
lations under  the  penalties  for  violation  thereof  as  later  herein 
stated. 

Section  4.  Be  it  further  enacted,  etc.,  That  the  Super- 
visor may  employ  such  assistants,  clerical  or  otherwise,  as 
may  be  necessary  to  the  discharge  of  his  duties,  and  fix  their 
compensation,  subject  to  approval  of  the  Conservation  Com- 
missioner. In  the  discharge  of  his  duties  the  supervisor  and 
his  assistants  shall  have  the  right  to  enter  upon  any  lease  or 
other  property  of  any  producer  in  the  oil  field,  and  have  such 
control  over  such  property,  machinery,  and  appliances  as 
may  be  requisite  to  gauge  the  wells;  and  also  shall  have  the 
right  to  examine  any  books,  papers,  or  accounts  of  any  oil 
producer  relative  to  his  production,  operation,  and  sales;  and 
of  any  buying  agency  relative  to  the  latter's  operations  as 
such. 

Section  5.     Be  it  further  enacted,  etc.,  That  all  acts  of 


212  STATUTES— PURCHASERS  OF  OIL 

the  supervisor  and  the  rules  and  regulations  by  him  pre- 
scribed shall  be  subject  to  amendment,  change,  modification, 
or  annullment  by  said  Commissioner  upon  hearing  after  such 
reasonable  notice  as  he  may  prescribe.  Jurisdiction  is  con- 
ferred upon  the  district  courts  of  this  State  to  review  every 
action  or  decision  of  such  Commissioner,  and  the  reasonable- 
ness of  any  order,  rule,  or  regulation  prescribed  or  approved 
by  him,  except  the  action  of  the  Commissioner  in  appoint-, 
ing  a  supervisor  as  provided  in  Section  3  herein,  and  the 
rules  and  regulations  prescribed  by  such  supervisor  shall  not 
be  suspended  until  set  aside  by  the  Commissioner  or  said 
court.  Such  review  may  be  had  at  the  instance  of  any  per- 
son having  an  interest  in  the  matter  to  be  reviewed  in  the 
manner  and  with  the  same  effect  as  is  now  or  may  hereafter 
be  allowed  in  suits  to  annul  orders  of  said  commission  in 
other  matters  over  which  he  has  jurisdiction. 

Section  6.  Be  it  further  enacted,  etc.,  That  if  any  per- 
son shall  wilfully  violate  any  order,  rule  or  regulation  made 
or  provided  by  said  Commissioner  or  supervisor  or  of  such 
court  of  competent  jurisdiction  unless  stayed  or  suspended 
he  shall  be  guilty  of  a  misdemeanor,  and  shall  be  fined  not 
less  than  one  hundred  ($100.00)  dollars  nor  more  than  one 
thousand  ($1,000)  dollars  for  each  offense,  and  shall  for- 
feit and  pay  to  the  State  of  Louisiana  not  less  than  one 
hundred^  ($100.00)  dollars  nor  more  than  one  thousand 
($1,000.00)  dollars  for  each  day's  violation,  to  be  recovered 
in  any  court  jurisdiction  at  the  suit  of  the  State. 

Section  7.  Be  it  further  enacted,  etc.,  That  as  herein  used 
the  words  "potential  production"  mean  the  amount  of  petro- 
leum which  can  be  an  dis  actually  produced  from  the  wells 
in  the  oil  field  when  operated  to  their  full  capacity  for  a 
reasonable  test  period  not  to  exceed  five  consecutive  days; 
"over-production"  means  that  the  potential  production  is  in 


STATUTES— PURCHASERS   OF  OIL  213 

excess  of  the  quantity  of  oil  being  taken  care  of  in  the  oil 
field:  "persons"  includes  all  individuals,  partnerships,  as- 
sociations of  persons  and  corporations;  "producers"  includes 
the  lessee  or  other  operator  of  oil  wells,  or  owner  of  oils  as 
produced  from  the  well,  and  also  the  owner  of  the  royalty 
therefrom;  and  "buying  agencies"  embraces  all  persons  en- 
gaged in  the  business  of  purchasing  oil  from  the  producer, 
provided  that  the  purchasing  by  a  producer  merely  of  the 
royalty  on  his  production  shall  not  make  such  producer  a 
buying  agency. 

Section  8.  Be  it  further  enacted,  etc.,  That  this  law  is 
designed  through  its  operation  during  a  period  of  over-pro- 
duction to  conserve  the  oiln  as  is  manifestly  to  the  public 
interest,  and  to  provide  means  whereby  all  of  the  producers 
may  have  a  reasonable  opportunity  to  sell  their  fair  propor- 
tion of  the  market's  requirements,  and  it  shall  be  construed 
to  effectuate  these  purposes. 

Section  9.  Be  it  further  enacted,  etc.,  That  is  Section  2, 
or  any  provision  thereof,  of  if  any  other  section  or  provision 
or  part  of  any  other  section,  be  declared  unconstitutional,  or 
void  for  any  other  reason,  such  holding  shall  not  invalidate 
any  other  provision  or  section  of.  this  act,  and  all  provisions 
of  any  section  of  this  act  which  are  constitutional  and  valid 
shall  remain  in  full  force  and  effect. 

R.  F.  WALKER, 
Speaker  of  the  House  of  Reprsentatives. 

HEWITT  BOUANCHAUD, 
Lieut  Governor  and  President  of  the  Senate. 
Approved:    July  6,  1920. 

JOHN  M.  PARKER, 

A  true  copy:  Governor  of  the  State  of  Louisiana. 

JAMES  J.  BAILEY, 

Secretary  of  the  State. 


214  STATUTES— CONSERVATION 

Conservation. 

ACT  No.  250  of  1920. 

Senate  Bill  No.  155.  By  Mr.  Boyer,  Chairman  of  the  Com- 
mittee on  Conservation,  etc.  Senate  Bill  No.  155.  Sub- 
stitute for  Senate  Bill  No.  115,  by  Mr.  Warren. 

AN  ACT. 

Granting  to  the  Department  of  Conservation,  created  by 
laws  of  Louisiana,  greater  power  and  authority  in  the  work 
of  conserving  the  crude  petroleum,  natural  gas  and  mineral 
substances  mined  or  produced  in  the  State  of  Louisiana, 
giving  to  the  Department  of  Conservation  power  and 
authority  to  adopt  and  promulgate,  amend  and  re-adopt, 
rules  and  regulations  for  the  drilling,  development,  sinking, 
deepening  and  abandonment  of  natural  gas  and  oil  wells, 
and  to  promulgate  rules  and  regulations  regulating  the  pro- 
duction and  use  of  natural  gas,  and  requiring  that  the  gaso- 
line contained  in  the  natural  gas  used  by  carbon  plants  be 
extracted  and  saved  before  such  gas  be  utilized  for  the  mak- 
ing of  Carbon;  empowering  and  authorizing  the  Department 
of  Conservation  to  take  charge  of,  control,  or  securely  cap 
or  plug  any  natural  gas  well  or  oil  well  wasting  oil  or  gas 
and  not  in  control;  providing  for  proceedings  in  the  exer- 
cise of  this  authority;  and  giving  a  lien  and  privilege  in 
favor  of  the  Department  of  Conservation  for  all  reasonable 
expenses  and  costs  incurred  by  it,  or  under  its  authority,  in 
the  closing,  caping  or  plugging  of  any  such  uncontrolled  or 
wild  well,  and  extending  this  lien  and  privilege  to  all  leases, 
property  and  equipment  owned  by  the  company,  firm  or 
individual  owning  such  wild  well,  and  defining  the  word 
"waste"  as  used  in  this  act;  and  requiring  persons,  associa- 
tions and  corporations  mining,  drilling  or  operating  oil  or 


STATUTES— CONSERVATION  215 

gas  wells  or  mines  to  report  to  the  Department  of  Conserva- 
tion from  time  to  time  on  the  output  of  such  wells  or  mines; 
prescribing  penalties  for  the  violation  of  this  Act'  and  the 
rules  and  regulations  of  the  Department  of  Conservation 
adopted  pursuant  hereto,  and  limiting  the  amount  of  fine  or 
term  of  imprisonment  that  may  be  imposed;  authorizing  and 
empowering  the  Department  of  Conservation  to  resort  to 
courts  for  legal,  equitable  or  criminal  process  to  compel 
obedience  and  compliance  with  its  rules  and  regulations;  and 
to  enforce  any  of  the  provisions  of  this  Act;  authorizing 
the  Department  of  Conservation  to  appeal  from  any  judg- 
ment or  decree  against  it,  or  any  order  restraining  the  De- 
partment in  the  exercise  of  its  authority;  granting  the  right 
to  appeal  to  any  person,  association  or  corporation  from  any 
judgment,  order  or  mandate  of  the  Department  of  Conserva- 
tion directed  against  it;  and  authorizing  the  determination 
of  the  reasonableness  of  the  orders,  rules  and  regulations  of 
the  Department  of  conservation  in  any  court  of  competent 
jurisdiction  at  the  timely  instance  of  any  party  affected 
thereby  and  conferring  jurisdiction  therefor;  making  it  the 
duty  of  the  Attorney  General,  on  request,  to  represent  the 
Department  of  Conservation,  and  Authorizing  the  appoint- 
ment of  a  District  Attorney  to  appear  instead  of  the  Attorney 
General,  under  certain  conditions;  declaring  all  legal  pro- 
ceedings hereunder  to  be  preference  matters  entitled  to  sum- 
mary trial  and  disposition  in  courts  of  competent  jurisdiction ; 
providing  for  appropriations  of  funds  necessary  for  the  en- 
forcement of  this  Act,  and  regulating  the  issuance  of  in- 
junctions restraining  the  Department  of  Conservation  in  its 
control  of  wild  gas  wells  and  providing  for  injunction  bonds 
therewith. 

Section  1.     Be  it  enacted  by  the  General  Assembly  of  the 
State  of  Louisiana,  That  the    Department  of    Conservation, 


216  STATUTES— CONSERVATION 

created  by  the  laws  of  the  State  of  Louisiana,  acting  through 
the  Commissioner  of  Conservation,  is  hereby  empowered  and 
directed  to  adopt  and  promulgate,  pursuant  to  the  pro- 
visions of  the  Constitution  and  the  laws  of  the  Stae  of  Lou- 
isiana and  of  this  Act,  such  rules  and  regulations  as  said 
Department  may  deem  necessary  for  the  conservation  of  the 
crude  petroleum,  natural  gas  and  mineral  substances  pro- 
duced in  the  State  of  Louisiana,  and  to  provide  rules  and 
regulatins  for  the  drilling  development,  sinking,  deepening, 
abandonment  and  operation  of  oil  wells,  gas  wells  and  mines 
for  the  purpose  of  conserving  the  products  produced  there- 
from, and  to  prevent  the  waste  of  such  products,  and  to  re- 
quire persons,  associations  and  corporations  mining,  drilling 
or  operating  such  wells  or  mines  to  report  to  it  from  time 
to  time  on  the  output  of  the  wells  or  mines  being  operated 
by  them. 

Section  2.  Be  it  further  enacted,  etc.,  That  the  Depart- 
ment of  Conservation  is  authorized  by  the  grant  or  power 
in  this  act  to  prescribe  rules  and  regulations  requiring  that 
the  gasoline  contained  in  natural  gas  used  by  carbon  plants 
be  extracted  and  saved  before  such  gas  be  utilized  for  the 
making  of  carbon,  where  such  gas  contains  sufficient  gaso- 
line to  make  the  extraction  thereof  beneficial  or  profitable. 

Section  3.  Bt  is  further  enacted,  etc.,  That  the  Depart- 
ment of  Conservation  be  and  it  is  hereby  given  supervision 
over  the  production  and  use  of  natural  gas  in  connection  with 
the  manufacture  of  carbon  black,  in  other  manufacturing 
enterprises  and  for  domestic  consumption ;  and  that  power 
and  authority  is  hereby  granted  to  the  Department  of  Con- 
servation to  prepare  and  promulgate  all  necessary  and  reas- 
onable rules  and  regulations  providing  for  the  conservation 
of  natural  gas  produced  for  and  used  in  plants  manufactur- 
ing carbon  black,  in  other  manufacturing  enterprises  and  for 


STATUTES— CONSERVATION  217 

domestic  consumption;  hereby  especially  granting  to  the 
Department  of  Conservation  the  power  to  limit  the  amount 
of  gas  which  may  be  withdrawn  from  all  the  gas  wells  in 
any  particular  gas  field  or  area  to  a  percentage  of  the  poten- 
tial capacity  of  such  gas  wells  as  may  be  reasonbly  necessary 
to  conserve  and  safe-guard  an  adequate  supply  of  natural 
gas. 

Section  4.  Be  it  further  enacted,  etc.,  That  in  order  to 
further  protect  the  natural  gas  fields  and  oil  fields  in  this 
State,  it  is  hereby  declared  to  be  unlawful,  and  the  Depart- 
ment of  Conservation  shall  have  the  authority  to  adopt 
rules  and  regulations  making  it  unlawful  and  declaring  it 
to  be  a  nuisance  for  any  person,  firm,  association,  or  corpora- 
tion to  negligently  permit  any  natural  gas  well  or  oil  well 
to  go  wild  or  waste  or  to  become  uncontrollable  or  wasteful, 
and  to  provide  that  the;  owner  or  person  in  possession  of 
any  wild,  uncontrolled,  or  wasteful  natural  gas  well  or  oil 
well  shall,  after  five  (5)  days  written  notice  given  to  such 
owner  or  proprietor  or  person  in  possession  by  the  Depart- 
ment of  Conservation  or  its  agent,  be  required  to  make  every 
reasonable  and  diligent  effort  to  close  such  well  and  securely 
cap  or  plug  it  in  accordance  with  the  rules  and  regultaions 
established  by  the  Department  of  Conservation. 

That  in  the  event  of  the  failure  of  the  owner  or  party  in 
possession  of  said  will  or  uncontrolled  natural  gas  well  or 
oil  well  within  five  (5)  days  after  service  of  the  notice  above 
provided  for,  to  begin  in  good  faith  the  work  of  closing, 
rapping  ,or  plugging  said  wild  or  uncontrolled  well,  and  to 
diligently  and  skillfully  prosecute  such  work,  then  the  De- 
partment of  Conservation  shall  have  the  superior  right  to 
enter  into  the  actual  possession  and  control  of  the  said  well 
and  to  take  charge  of  the  work  of  closing  said  wild  or  un- 
controlled natural  gas  well  or  oil  well,  and  it  shall  have  the 


218  STATUTES— CONSERVATION 

right  to  proceed,  through  its  own  agents  or  by  contract  with 
a  reasonable  contractor,  to  close  or  plug  the  said  wild  or  un- 
controlled well  or  otherwise  prevent  the  wasteful  escape  or 
wasteful  loss  of  natural  gas  or  oil  from  such  well,  all  at  the 
reasonable  expense  of  the  owner  or  proprietor  thereof;  and 
in  order  to  secure  to  the  Department  of  Conservation  the 
reasonable  cost  and  expense  of  closing,  capping,  or  plugging 
such  wild  well,  the  possession  of  the  same  with  sufficient 
ground  adjacent  thereto  belonging  to  such  owner  or  pro- 
prietor with  the  rents,  revenues  and  incomes  therefrom, 
shall  be  retained  by  the  Department  of  Conservation  until 
the'  full  and  final  payment  of  such  costs  and  expense  in- 
curred shall  be  repaid  to  the  department  of  Conservation 
or  the  contractor,  and  when  such  owner  or  proprietor  or 
person  in  possession  of  such  well  shall  pa>f  such  cost  and 
expense  to  the  Department  of  Conservation,  less  the  revenues, 
rents,  and  income  derived  therefrom  by  the  Department  of 
Conservation,  while  same  was  in  the  possession  of  said  De- 
partment. The  Department  of  Conservation  shall,  after  such 
well  is  brought  under  control,  restore  possession  of  said  well 
to  the  cwner;  provided  that  in  the  event  rents,  reveaucs  and 
income  shall  not  be  sufficient  to  reimburse  the  Department 
of  Conservation,  as  provided  for  in  this  section,  then  and 
in  that  event,  the  costs  and  expense  of  closing  or  plugging 
said  wild  or  uncontrolled  or  wasteful  natural  gas  well  or 
oil  wells  shall  operate  as  a  lien  or  privilege  in  favor  of  the 
Department  of  Conservation  upon  all  of  the  property  of  the 
owner  or  proprietor  of  said  wild  well,  except  such  as  is  ex- 
empted by  law,  and  the  Department  of  Conservation  shall 
proceed  to  enforce  said  lien  and  privilege  by  suit  before  any 
court  of  competent  jurisdiction,  the  same  as  any  other  like 
civil  action,  and  the  judgment  so  obtained  shall  be  executed 
in  the  same  manner  now  provided  by  law  for  execution  of 


STATUTES— CONSERVATION  219 

judgments.  Any  excess  over  the  amount  due  thel  Depart- 
ment of  Conservation  which  the  property  seized  and  sold  may 
bring,  after  payment  of  court  costs  shall  be  paid  over  to  the 
owner  of  said  wild  or  uncontrolled  well. 

Section  5.  Be  it  further  enacted,  etc.,  That  the  term 
"waste"  as  used  in  this  act,  in  addition  to  its  ordinary  mean- 
ing, shall  include  underground  waste,  surface  waste,  or  any 
unreasonable  waste  or  leakage  in  the  production  of  crude 
petroleum,  natural  gas,  or  other  minerals. 

Section  6.  Be  it  further  enacted,  etc.,  That  the  Depart- 
ment of  Conservation  shall  have  the  right  to  appear  in  court, 
through  its  chief  officer  or  other  designated  agent,  or  sub- 
ordinate officer,  duly  designated  by  the  chief  officer  to  en- 
force rules  and  regulations  and  any  provision  of  this  act 
by  civil  or  criminal  process  before  any  court  in  the  State  of 
Louisiana  of  competent  jurisdiction. 

Any  corporation,  partnership,  association  or  individual 
who  shall  willfully  violate  any  provision  or  any  rule  or  regu- 
lation adopted  by  the  Department  of  Conservation,  puruant 
hereto,  upon  conviction  thereof  by  any  court  of  competent 
jurisdiction  shall  be  deemed  guilty  of  a  misdemeanor  and 
may  be  fined  not  less  than  Fifty  ($50.00)  Dollars  nor  more 
than  fifteen  hundred  ($1,500.00)  dollars  or  suffer  imprison- 
ment for  not  more  than  fifteen  (15)  days  in  the  Parish  jail, 
or  both,  at  the  discretion  of  the  court. 

Section  7.  Be  it  further  enacted,  etc.,  That  the  Depart-, 
ment  of  Conservation  shall  have  the  right  and  power  to  re- 
sort to  the  courts  and  through  the  courts  make  use  of  writs 
of  injunction,  mandamus,  or  any  lawful  process  to  compel 
the  obedience  and  compliance  with  the  rules  and  regulations 
adopted  by  its  pursuant  to  the  authority  of  this  act,  and  to 
enforce  any  provisions  of  this  act,  all  without  giving  bond 


220  STATUTES— CONSERVATION 

for  the  payment  of  costs.  That  the  right  to  appeal  is  hereby 
granted  to  the  Department  of  Conservation  to  any  court  of 
competent  appellate  jurisdiction,  from  any  judgment  or  de- 
cree or  order  restraining  the  Department  of  Conservation 
from  exercising  the  authority  given  in  this  act  or  the  rules 
and  regulations  adopted  pursuant  to  same,  said  appeal  or 
appeals  to  be  prosecuted  without  giving  bond  for  payment 
of  costs. 

No  injunction  may  be  issued  by  any  court,  to  restrain  the 
Department  of  Conservation,  or  any  of  its  agents,  officers 
or  employees,  from  carrying  out  the  provisions  of  Section 
4  of  this  act,  except  upon  rule  after  not  less  than  three  (3) 
days  notice,  and  on  the  trial  of  such  rule,  which  shall  be 
summary,  the  defendant  shall  be  allowed  to  introduce  evi- 
dence to  rebut  the  allegations  of  the  petition,  with  the  right 
on  the  part  of  the  plaintiff  also  to  offer  evidence;  and  the 
injunction  should  not  thereafter  issue  unless  the  court  shall 
be  satisfied  from  the  evidence  submitted,  that  the  plaintiff 
has  made  out  a  prima  facie  case,  and  in  the  order  for  such 
injunction,  the  court  shall  fix  the  amount  of  bond  to  be 
furnished  by  the  plaintiff. 

Section  8.  Be  it  further  enacted,  etc.,  That  if  any  com- 
pany, corporation,  partnership  or  individual  engaged  in  the 
use  of  natural  gas  in  any  manufacturing  or  industrial  enter- 
prise or  engaged  in  the  production  of  or  discovery  of  natural 
gas  or  oil,  and  placed  under  the  supervision  of  the  Depart- 
.ment  of  Conservation  by  the  terms  of  this  act,  shall  be  dis- 
satisfied with  any  order,  rule,  or  regulation  prepared  and 
promulgated  by  the  Department  of  Conservation  under  the 
authority  granted  under  this  act,  such  company,  corporation, 
partnership  or  individual  may,  within  three  months  after  any 
such  order,  rule  or  regulation  is  made  and  become  effective 
by  the  Department  Conservation,  and  not  thereafter,  file  in  a 


STATUTES— CONSERVATION  221 

court  of  competent  jurisdiction,  at  the  domicile  of  the  com- 
plainant, or  the  Department  of  Conservation,  or  in  any 
parish  where  the  said  action  arose,  a  petition  setting  forth 
therein  the  particular  cause  or  causes  of  objection  to  the 
order,  rule  or  regulation  of  said  Department  of  Conserva- 
tion so  complained  of. 

All  such  cases  shall  be  tried  in  the  same  manner,  subject 
to  the  legal  writs  and  processes,  as  civil  cases  (and  shall  be 
given  precedence  over  all  other  civil  cases  in  the  said  court), 
and  shall  be  heard  and  determined  as  speedily  as  possible. 
Any  such  court  shall  have  the  power  and  authority  to  affirm 
the  order,  rule  or  regulation  of  said  Department  of  Conser- 
vation so  complained  of,  or  to  change,  modify,  alter  or  set 
aside  the  same,  as  justice  may  require;  provided,  that  in  all 
cases  wherein  the  enforcement  of  the  said  rule!  or  regula- 
tion of  the  said  Department  of  Conservation  shall  be  sought 
to  be  enjoined  or  restrained,  such  injunction  or  restraining 
order  shall  issue  upon  the  party  seeking  the  same  giving 
such  bond,  to  be  executed  in  favor  of  the  Department  of 
Conservation  in  such  amount  and  with  such  surety  as  the 
court  shall  direct. 

Section  9.  Be  it  further  enacted,  etc.,  That  all  civil  or 
criminal  prosecutions  instituted  in  the  courts  of  this  State 
by  the(  Department  of  Conservation  or  under  its  direction 
and  authority,  and  all  appeals  prosecuted  from  judgments 
adverse  to  the  contention  of  the  Department  of  Conservation, 
and  all  appeals  taken  from  the  orders  and  mandates  of  the 
Department  of  Conservation,  shall  be  tried  summarily,  as 
the  practice  in  the  courts  of  Louisiana  permit,  and  by  pref- 
erence in  said  courts. 

Section  10.  Be  it  further  enacted,  etc.,  That  it  is  hereby 
made  the  duty  of  the  Attorney-General  to  represent  the  De- 


222  STATUTES— CONSERVATION 

partment  of  Conservation,  whenever  requested  by  it  in  any 
of  the  courts  of  this  State,  but  the  Attorney-General  may 
direct  a  District  Attorney  to  appear  in  his  place  and  stead 
in  any  case  the  Department  of  Conservation  moves  to  or 
institutes  before  a  court,  within  the  judicial  district  where 
said  District  Attorney  resides. 

Section  11.  Be  it  further  enacted,  etc.,  That  the  Depart- 
ment of  Conservation,  acting  through  he  Commissioner  of 
Conservation,  shall  have  power  to  amend,  re-adopt  and  pre- 
scribe new  rules  and  regulations,  from  time  to  time,  when- 
ever in  the  judgment  of  said  department  of  the  same  are 
neccessary. 

Section  12. — Bd  it  further  enacted,  etc.,  That  the  funds 
necessary  for  the  enforcement  of  this  act  be  appropriated 
from  funds  derived  from  the  license  imposed  on  the  busi- 
ness of  severing  natural  resources,  as  the  Legislature  may 
appropriate  or  otherwise  provide. 

Section  13.  Be  it  further  enacted,  etc.,  That  this  act 
shall  take  effect  from  and  after  its  passage  and  promulgation, 
and  that  all  laws  in  conflict  herewith  are  hereby  repealed. 

HEWITT  BOUNCHAD, 
Lieutenant  Governor  and  President  of  the  Senate. 

R.  F.  WALKER, 
Speaker  of  the  House  of  Representatives. 

Approved:    July  8,  1920. 

JOHN  M.  PARKER, 
Governor  of  the  State  of  Louisiana. 
A  true  copy : 

JAMES  J.  BAILEY, 
Secretary  of  State. 


STATUTES— PIPE  LINES  223 

Pipe  Lines  as  Common  Carriers. 

ACT  No.  36  of  1906. 

By  Mr.  St.  Julien.  House  Bill  No.  53. 

AN  ACT. 

To  declare  pipe  lines  common  carriers,  and  to  place  them 
under  the  control  and  regulation  of  the  Railroad  Commission 
of  Louisiana. 

Section  1.  Be  it  enacted  by  the  General  Assembly  of  the 
State  of  Louisiana,  That  all  pipe  lines,  through  which  gasses, 
oil,  or  other  liquids  are  conveyed  from  one  point  in  the  State 
to  another  point  in  the  State,  for  a  consideration,  are  hereby 
declared  to  be  common  carriers,  and  are  placed  under  the  con- 
trol of  and  subject  to  regulation  by  the  Railroad  Commission 
of  Louisiana. 

Section  2.  Be  it  further  enacted,  etc.,  That  the  power  and 
authority  is  herby  vested  in  the  Railroad  Commission  of 
Louisiana,  and  it  is  hereby  made  its  duty  to  adopt,  change,  or 
make  reasonable  and  just  charges  or  regulations  to  govern 
and  regulate  all  pipe  lines  in  this  State  through  which  gasses, 
or  other  liquids  are  conveyed  from  one  point  in  the  State  to 
another  point  in  the  State  for  a  consideration. 

Section  3.    Be  it  further  enacted,  etc.,  That  all  laws  or  parts 


224  STATUTES— PIPE  LINES 

of  laws  inconsistent  or  in  conflict  with  this  Act  be  and  the 
same  are  hereby  repealed. 

J.  W.  HYAMS, 
Speaker  of  the  House  of  Representatives. 

J.  Y.  SANDERS, 
Lieutenant  Governor  and  President  of  the  Senate. 

Approved:  June  29th,  1906. 

NEWTON  C.  BLANCHARD, 
Governor  of  the  State  of  Louisiana. 
A  true  copy: 

JOHN  T.  MICHEL, 

Secretary  of  State. 

Pipe  Lines. 

ACT  No.  39  of  1906. 

By  Mr.  Toomer.  House  Bill  No.  233. 

AN  ACT. 

Relative  to  corporations,  domestic  and  foreign,  organized 
with  the  power  to  build  and  construct  pipe  lines  for  transpor- 
tation of  oil  and  gas,  or  either,  giving  such  corporations,  un- 
der certain  terms,  the  right  of  expropriation,  rights  of  way 
under  and  across  all  publice  lands  and  across  streams  4and 
other  public  waters,  and  rights  of  way  along,  across  and  un- 
der public  rural  highways  and  roads,  and  streets  and  public 
places  of  cities  and  towns  with  the  consent  of  and  upon  terms 
imposed  by  the  local  authorities  having  jurisdiction  thereof, 
and  declaring  all  corporations  exercising  the  powers,  herein 
conferred,  to  be  common  carriers. 


STATUTES— PIPE  LINES  225 

Section  1.  Be  it  enacted  by  the  General  Assembly  of  the 
State  of  Louisiana:  That  corporations,  whether  domestic  or 
foreign,  organized  with  the  power  of  constructing  and  oper- 
ating pipe  lines  for  the  transportation  of  oil  or  gas,  or  either, 
shall  have  the  right  to  expropriate  rights  of  way  for  such  pipe 
lines  and  for  telegraph,  and  telephone  lines  incident  to  the 
operations  of  such  pipe  lines  and  lands  for  tank  and  pumping 
stations,  making  part  of  such  lines,  or  of  storage  stations  con- 
nected therewith,  and  necessary  to  the  purpose  thereof. 

Section  2.  Be  it  further  enacted,  etc.,  That  said  right  of 
expropriation  shall  be  exercised  in  the  same  manner,  and  by 
the  same  proceedings,  and  under  the  same  limitations  now  im- 
posed by  law  on  railroads  and  other  quasi-public  corporations. 

Section  3.  Be  it  further  enacted,  etc.,  That  said  corpora- 
tions shall  have  a  right  of  way  not  exceeding  ten  (10)  feet 
wide  for  the  laying  of  their  pipe  lines  under  and  across  all 
public  lands  of  the  State. 

Section  4.  Be  it  further  enacted,  etc.,  That  such  corpora- 
tion shall  have  the  right,  with  their  pipe  lines  to  cross  all  pub- 
lic streams  and  waters  of  the  State,  but  in  such  case,  the  lines 
shall  be  so  constructed  as  not  to  impede  or  interfere  with  the 
navigation  thereof,  if  such  streams  and  waters  are  navigable, 
nor  with  the  drainage  through  said  streams  and  waters, 
whether  navigable  or  not. 

Section  5.  Be  it  further  enacted,  etc.,  That  said  corpora- 
tion shall  have  the  right  to  lay  and  maintain  its  pipe  lines 
along,  under  and  across  all  public  rural  highways  and  roads, 
and  along,  under  and  across  all  streets  and  public  places  in 
cities  and  towns,  with  the  consent  of  the  local  authorities 
having  jurisdiction  or  control  thereof,  and  upon  such  terms 
as  such  authorities  may  impose. 


226  STATUTES— PIPE  LINES 

Section  6.  Be  it  further  enacted,  etc.,  That  the  right  con- 
ferred by  this  law  upon  any  such  corporation  to  lay  its  pipe 
lines  under  and  across  public  lands  and  along  and  across  pub- 
lic highways,  streams  and  waters  and  streets  upon  the  terms 
stated,  shall  also  permit  said  corporation  availing  itself  of 
such  right,  to  construct  and  maintain  along  the  route  of  such 
pipe  lines,  telegraph  and  telephone  lines  incident  to  the  opera- 
tion of  such  pipe  lines. 

Section  7.  Be  it  further  enacted,  etc.,  That  no  such  corpor- 
ation shall  have  power  to  exercise  any  right  of  expropriation 
herein  conferred,  until  it  shall  have  filed  with  the  Secretary 
of  State,  a  resolution  of  its  Board  of  Directors,  duly  certified 
under  its  seal  Consenting  and  agreeing  that  said  corporation 
shall  be  a  common  carrier  of  either  gas  or  oil,  or  both,  and 
that  it  shall  and  will  transport  that  product  whereof  it  has 
declared  itself  a  common  carrier,  for  all  persons  and  corpora- 
tions up  to  the  capacity  of  its  pipe  line,  without  discrimination 
or  preference. 

J.  W.  HYAMS, 
Speaker  of  the  House  of  Representatives. 

J.  Y.  SANDERS, 
Lieutenant  Governor  and  President  of  the  Senate. 

Approved:  June  29th,  1906. 

NEWTON  C.  BLANCHARD, 
Governor  of  the  State  of  Louisiana. 

A  true  copy: 

JOHN  T.  MICHEL, 

Secretary  of  State. 


STATUTES— PIPE  LINES  227 

Pipe  Lines  Crossing  Levees. 

ACT  No.  45  of  1921. 

Senate  Bill  No.  53.  By  Mr.  Butler. 

AN  ACT. 

Requiring  the  Board  of  Commissioners  of  all  Levee  Dis- 
tricts to  notify  owners  of  pipe  lines  of  the  construction  of  new 
levees,  where  such  pipe  lines  are  under  or  over  such  levees; 
requiring  that  pipe  line  owners  be  given  thirty  days  in  which 
to  move  such  pipe  lines  and  requiring  said  board  of  commis- 
sioners of  all  levee  districts,  on  failure  to  give  such  notice,  to 
pay  cost  of  removing  said  pipe  lines. 

Section  1.  Be  it  enacted  by  the  Legislature  of  Louisiana, 
that,  except  in  cases  of  immediate  emergency,  due  to  caving 
river  banks,  or  a  breach,  or  an  approaching  breach'  of  the 
maintaining  line  of  the  public  levee,  whenever  any  new  levee 
is  to  be  built,  or  any  old  levee  is  to  be  moved  in  any  levee  dis- 
trict in  the  State  of  Louisiana,  and  said  new  levee  to  be  con- 
structed, or  old  levee  to  be  moved,  shall  cross,  or  be  built  along 
or  upon  any  oil,  gas,  or  water  pipe  line,  the  Board  of  Com- 
missioners of  said  Levee  District  building  such  levee,  or  mov- 
ing such  old  levee,  be,  and  they  are  hereby  required  to  notify 
the  owners  of  said  oil,  gas,  or  water  lines  at  least  thirty  (30) 
days  prior  to  beginning  said  new  levee  construction  ,or  work 
of  removal,  in  order  to  enable  said  owners  to  move  said  pipe 
lines. 

Section  2.  That,  except  as  specified  in  Section  1  of  this 
Act,  whenever  any  old  levee  is  to  be  moved,  the  Board  of 
Commissioners  of  the  Levee  District  wherein  the  said  levee 
is  located,  be,  and  they  are  hereby  required  to  give  the  owners 
of  all  oil,  gas,  and  water  lines  crossing  said  levee  thirty  (30) 


228  STATUTES— PIPE  LINES 

days  notice  of  the  intended  removal  in  order  that  the  owners 
of  such  oil,  gas  and  water  lines  may  have  sufficient  time  in 
which  to  move  said  pipe  lines,  and  make  necessary  prepara- 
tions for  the  construction  of  new  pipe  lines. 

Section  3.  That,  except  as  specified  in  Section  1,  whenever 
the  Board  of  Commissioners  of  any  Levee  District  shall  fail, 
neglect,  or  refuse  to  give  the  notice  herein  required  to  the 
owners  of  any  oil,  gas  or  water  lines,  and  shall  construct  levees 
along,  across,  or  on  any  oil,  gas  or  water  lines,  then  said  Board 
of  Commissioners  shall  be  required  to  pay  the  cost  of  remov- 
ing said  oil,  gas  or  water  lines  from  under  said  levee,  provided 
that  maps  or  plats  of  said  pipe  lines,  in  the  form  of  blue  prints 
or  otherwise  shall  have  been  previously  filed  in  the  office  of 
the  State  oBard  of  Engineers 

Section  4.  That  all  laws,  or  parts  of  laws,  in  conflict  here- 
with be,  and  the  same  are  hereby  repealed. 

Approved:  By  the  Lieutenant-Governor  and  Acting  Gover- 
nor. 

A  true  copy: 

JAMES  J.  BAILEY, 

Secretary  of  State. 

Common  Carriers. 

ACT  No.  76  of  1920. 

House  Bill  No.  111.  By  Mr.  Douglass. 

AN  ACT. 

To  amend  and  re-enact  Act  No.  36  of  the  General  Assem- 
bly of  the  State  of  Louisiana  for  the  year  1906,  entitled,  "An 
Act  to  declare  pipe  lines  common  carriers  and  to  place  them 


STATUTES— PIPE  LINES  229 

under  the  control  and  regulation  of  the  railroad  commission 
of  Louisiana,"  by  defining  the  terms  "Common  Carrier"  and 
"pipe  line,"  granting  to  common  carrier  pipe  lines  the  right 
of  eminent  domain;  providing  for  the  exchange  of  crude 
petroleum  tonnage  between  common  carrier  pipe  lines  and 
the  furnishing  of  reasonable  facilities  therefor ;  requiring  the 
Railroad  Commission  to  prescribe  reasonable  rules  and  regu- 
lations for  the  operation  of  common  carrier  pipe  lines  and  the 
use  of  all  facilities  and  equipment  used  in  connection  wfith  such 
business;  empowering  the  Railroad  Commission  to  fix  rea- 
sonable rates  and  charges  for  service  rendered  by  common 
carrier  pipe  lines,  prohibiting  discrimination  by  common  car- 
rier pipe  lines  in  regard  to  facilities  furnished,  services  ren- 
dered or  rates  charged;  empowering  the  Railroad  Commis- 
sion to  define  marketable  crude  petroleum  and  to  provide  how 
deduction  from  crude  petroleum  delivered  for  transportation 
may  be  made  and  for  what  causes;  empowering  the  Railroad 
Commission  to  require  common  carrier  pipe  lines  to  make  re- 
ports and  to  install  and  maintain  reasonable  tank  facilities  for 
all  crude  petroleum  transported;  providing  the  procedure  un- 
der which  any  party  in  interest  may  seek  relief  hereunder  or 
may  contest  any  order,  rule,  rate  or  regulation  of  the  Railroad 
Commission  issued  or  made  in  pursuance  to  the  provisions  of 
this  Act  or  may  appeal  from  any  judgment  rendered  by  a  trial 
court  hereunder;  and  generally  vesting  the  said  Railroad 
Commission  with  jurisdiction  and  power  to  make  and  enforce 
all  needful  and  reasonable  rules  and  regulations,  either  gen- 
eral in  their  nature  or  applicable  to  particular  oil  fields,  cover- 
ing and  prescribing  fully  the  duties  of  common  carriers  as 
herein  defined;  and  providing  for  penalties  for  violations  of 
this  Act. 

Section  1.     Be  it  enacted  by  the  general  assembly  of  the 
State  of  Louisiana  that  Act  No.  36  of  the  General  Assembly  of 


236  STATUTES— PIPE  LINES 

Louisiana  for  the  year  1906;  entitled,  "an  act  to  declare  pipe 
line  common  carriers  and  to  place  them  under  the  control  and 
regulation  of  the  Railroad  Commission  of  Louisiana,"  be 
amended  and  re-enacted  so  as  to  read  as  follows : 

Section  2.  Be  it  further  enacted,  etc.,  That  all  pipe  lines 
through  which  crude  petroleum  is  conveyed  from  one  point 
in  the  State  to  another  point  in  the  State  are  hereby  declared 
to  be  common  carriers,  as  hereinafter  defind  and  provided, 
and  are  placed  under  the  control  of,  and  subject  to  regulation 
by,  the  Railroad  Commission  of  Louisiana. 

Section  3.  Be  it  further  enacted,  etc.,  That  the  term  "Com- 
mon Carrier'  'as  used  in  this  Act  shall  include  all  persons, 
firms  or  corporations  engaged  in  the  transportation  of  crude 
petroleum  as  "Common  Carriers"  for  hire;  or  which  upon 
proper  showing  may  be  legally  held  to  be  a  "Common  Car- 
rier" from  the  nature  of  the  business  conducted  or  from  the 
manner  in  which  such  business  is  carried  on. 

Section  4.  Be  it  further  enacted,  etc.,  That  the  power  and 
authority  are  hereby  vested  in  the  Railroad  Commission  of 
Louisiana  and  it  is  hereby  made  its  duty  to  adopt,  change,  or 
make  reasonable  and  just  charges  or  regulations  to  govern 
and  regulae  all  common  carrier  pipe  lines  in  this  State 
through  which  crude  petroleum  is  conveyed  from  one  point 
in  the  State  to  another  point  in  the  State. 

Section  5.  Be  it  further  enacted,  etc.,  That  the  term  "pipe 
line"  when  used  in  this  Act  shall  be  deemed  to  include  the  real 
estate,  rights  of  way,  pipe  in  line,  tank  facilities  as  herein 
designated,  and  necessary  for  the  proper  conduct  of  its  busi- 
ness as  a  common  carrier,  all  fixtures,  equipment  and  per- 
sonal property  of  every  kind  owned,  controlled,  operated,  used 
or  managed,  in  connection  with,  or  to  facilitate  the  transpor- 


STATUTES— PIPE  LINES  231 

tation,  distribution  and  delivery  of  crude  petroleum  through 
lines  constructed  of  pipe. 

Section  6.  Be  it  further  enacted,  etc.,  That  the  right  to 
lay,  maintain  and  operate  pipe  lines,  together  with  telegraph 
and  telephone  lines  incident  to  and  designed  for  use  only  in 
connection  with  the  operation  of  such  pipe  lines  along,  across, 
over  or  under  any  navigable  streams  or  public  highway, 
street,  bridge  or  other  public  place  in  this  state  is  hereby  con- 
ferred upon  all  persons,  firms,  associations  of  persons,  or  cor- 
porations coming  within  any  of  the  definitions  of  a  common 
carrier  pipe  line  as  herein  set  forth.  This  right  to  run  along, 
across,  over  or  under  any  public  road,  bridge  or  highway,  as 
before  provided  for,  may  only  be  exercised  upon  condition 
that  the  traffic  thereon  be  not  interfered  with,  and  that  such 
road  or  highway  be  promptly  restored  to  its  former  condition 
of  usefulness,  as  the  expense  of  the  pipe  line  owner,  the  re- 
storation threof  to  be  subject  also  to  the  supervision  and  ap- 
proval of  the  proper  local  authority,  and,  provided,  that  in 
the  exercise  of  the  privilege  herein  conferred,  such  pipe  lines 
shall  compensate  the  parish,  municipality  or  road  district,  re- 
spectively, for  any  damage  done  to  such  road,  in  the  laying 
of  pipe  lines,  telegraph  or  telephone  lines,  along,  under,  over 
or  across  the  same ;  and  nothing  herein  shall  be  construed  to 
grant  any  pipe  line  company  the  right  to  use  any  public  street 
or  alley  or  any  incorporated  city,  town  or  village,  except  by 
express  permission  from  the  city  or  governing  authority 
thereof. 

Section  7.  Be  it  further  enacted,  etc.,  That  the  Railroad 
Commission  shall  have,  and  is  hereby  vested  with,  the  power 
to  establish  and  enforce  reasonable  rates  or  charges  and  regu- 
lations for  gathering,  transporting,  loading  and  delivering 
crude  petroleum  by  any  such  common  carrier  in  this  State, 
and  for  the  furnishing  and  use  of  reasonable  tank  facilities 


232  STATUTES— PIPE  LINES 

necessarily  incident  to  such  transportation  and  that  may  be 
necessary,  in  its  capacity  as  a  common  carrier  only,  to  take 
care  of  all  crude  petroleum  transported  by  it  for  a  reasonable 
time  ,and  to  prescribe  and  enforce  rules  and  regulations  for 
the  government  and  control  of  such  common  carriers  in  re- 
spect to  their  pipe  lines  and  receiving,  tank,  delivering,  trans- 
ferring and  loading  facilities.  It  shall  be  its  duty  to  exercise 
such  power  upon  petition  by  any  person  showing  a  substantial 
interest  in  the  subject.  No  order  requiring  the  furnishing  of 
such  facilities  or  establishing  or  prescribing  rates,  rules  and 
regulations  shall  be  made,  except  after  hearing  and  at  least 
ten  days  and  not  more  than  thirty  days  notice  to  the  person, 
firm  or  corporation,  partnership  or  association  of  persons 
owning,  controlling,  managing  or  operating  the  pipe  line  or 
pipe  lines  affected.  In  the  event  any  rate  shall  be  filed  by  any 
pipe  line  and  complaint  against  same  or  petition  to  reduce 
same  shall  be  filed  by  any  shipper  or  owner  of  crude  petro- 
leum, and  such  complaint  be  sustained,  in  whole  or  in  part 
all  owners  and  shippers  of  crude  petroleum  who  shall  have 
paid  rates  so  filed  by  the  line  shall  have  the  right  to  repara- 
tion or  reimbursement  of  all  excess  in  transportation  charges 
so  paid  over  and  above  the  proper  rate  as  finally  determined, 
on  all  shipments  made  within  six  months  prior  to  the  date  of 
the  filing  of  such  complaint. 

Section  8.  Be  it  further  enacted,  etc.,  That  every  common 
carrier  as  above  defined  shall  exchange  crude  petroleum  ton- 
nage with  each  like  common  carrier  and  shall  furnish  reason- 
able connections  and  facilities  for  the  interchange  of  such  ton- 
nage, subject  to  such  reasonable  rates  and  regulations  as  may 
be  fixed  by  the  Commission.  And  any  such  common  carrier 
under  like  rules  and  regulations  shall  be  required  to  install 
and  maintain  reasonable  facilities  for  the  recipt  and  delivery 
of  crude  petroleum  at  such  points  along  its  lines  as  may  be 


STATUTES— PIPE   LINES  233 

reasonable  necessary  for  the  proper  conduct  of  its  business  as 
a  common  carrier. 

No  carrier  shall  be  required  to  receive  or  transport  any 
crude  petroleum  except  such  as  may  be  marketable  as  defined 
under  reasonable  rules  and  regulations  to  be  established  by  the 
commission  which  is  hereby  empowered  and  required  to  make 
reasonable  rules  for  the  ascertainment  of  the  amount  of  water 
and  other  foreign  matter  in  oils  tendered  for  transportation 
and  for  deduction  therefor  and  for  the  amount  of  deduction 
if  any,  to  be  made  for  temperature,  leakage,  seepage,  and 
evaporation ;  provided,  however,  that  the  recital  herein  of  par- 
ticular powers  on  the  part  of  said  Commission  shall  not  be 
constructed  to  limit  the  general  powers  conferred  by  this  Act. 

Every  order,  decision,  rule,  rate  and  regulation  of  the  Com- 
mission adopted  under  this  Act  shall  go  into  effect  at  such 
time  as  may  be  fixed  by  the  Commission  and  shall  remain  in 
effect  and  be  complied  with,  unless  and  until  set  aside  by  the 
Commission  or  by  a  final  judgment  of  a  court  of  competent 
jurisdiction  rendered  on  final  trial  in  a  suit  to  set  aside  and 
annul  the  same ;  provided,  nothing  herein  contained  shall  deny 
to  any  court  of  competent  jurisdiction  the  right  to  suspend 
such  order,  decision,  rule,  rate  or  regulation  by  injunction 
or  otherwise,  upon  bond  in  amount  and  condition  as  may 
be  fixed  by  said  court;  and,  provided,  further,  that  in  the 
event  such  order  or  injunction  be  set  aside  by  final  judgment, 
any  parties  showing  interest  and  injury  may  sue  and  recover 
on  said  bond. 

Section  9.  Be  it  further  enacted,  etc.,  That  all  common 
carriers  of  crude  petroleum  shall  make  and  publish  their  tar- 
iffs and  charges  under  and  according  to  such  reasonable  rules 
and  regulations  as  may  be  prescribed  by  said  Commission, 
and  the  Commission  may  require  them  to  make  reports  and 


234  STATUTES— PIPE  LINES 

may  investigate  all  their  books  and  records  kept  in  connection 
with  such  business.  Upon  petition  of  any  shipper  alleging  in- 
jury or  showing  substantial  basis  to  fear  injury  by  reason  of 
inadequate  facilities  as  herein  defined,  the  Commission  may 
require  from  such  common  carrier  pipe  line  reports,  duly  veri- 
fiod  under  oath,  of  the  total  quantities  of  crude  petroleum 
owned  by  such  pipe  line  and  that  held  by  them  in  its  distribu- 
tion, provided  no  publicity  shall  be  given  by  the  Commission 
to  the  reports  as  to  stock  of  crude  petroleum  on  hand  of  any 
particular  pipe  line,  but  the  Commission  shall  have  the  power 
and  authority  to  hear  and  determine  complaints,  to  require 
attendance  of  witnesses,  pay  their  expenses  and  to  institute 
suits  and  sue  out  such  writs  and  process  as  may  be  necessary 
for  the  enforcement  of  its  orders. 

Section  10.  Be  it  further  enacted,  etc.,  That  no  such  com- 
mon carrier  in  its  operations  as  such  shall  discriminate  be- 
tween or  against  shippers  or  owners  of  crude  petroleum  in 
regard  to  facilities  furnished,  or  service  rendered,  or  rates 
charged  under  same  or  similar  circumstances  in  the  transpor- 
tation of  crude  petroleum;  nor  shall  there  be  any  discrimina- 
tion in  favor  of  the  transportation  of  crude  petroleum  pro- 
duced or  purchased  by  itself,  directly  or  indirectly.  In  this 
connection,  common  carrier  pipe  lines  shall  be  considered  as 
shippers  or  receivers  of  crude  petroleum  produced  or  pur- 
chased by  themselves,  directly  or  indirectly  and  handled 
through  their  facilities.  No  such  carrier  in  such  operations 
shall,  directly  or  indirectly,  charge,  demand,  collect  or  receive 
from  any  one  a  greater  or  less  compensation  for  any  service 
rendered  than  from  another  for  a  like  and  contemporaneous 
service;  provided,  that  this  shall  not  limit  the  right  of 
the  commission  to  prescribe  different  rules  and  regu- 
lations for  transportation  from  or  to  other  places,  as  it  may 
determine.  Nor  shall  any  carrier  be  guilty  of  discrimination 


STATUTES— PIPE  LINES  235 

when  obeying  any  order  of  the  Commission.  When  there 
shall  be  offered  for  transportation  more  crude  petroleum  than 
can  be  immediately  transported,  the  same  shall  be  equitable 
and  ratably  apportioned.  The  Commission  shall  make  and 
enforce  general  or  specific  regulations  in  this  regard.  Sub- 
ject to  these  provisions,  pipe  lines  shall  accept  ratably  and 
equitably  for  transportation  all  marketable  crude  petroleum 
tendered;  provided,  that  no  common  carrier  pipe  line  shall  at 
any  time  be  required  to  receive  for  shipment  from  any  person, 
firm,  corporation  or  association  of  persons,  exceeding  three 
Ihousand  barrels  of  petroleum  in  any  one  day. 

The  commission  shall  have  the  power  to  employ  a  compe- 
tent expert  ,or  experts,  possessing  experience  in  the  business 
of  producing  crude  petroleum  to  aid  the  Commission  in  car- 
rying out  the  provisions  of  this  Act;  the  selection  of  such 
agent,  or  agents,  to  be  made  from  among  those  recommended 
by  the  oil  producing  interests  of  the  state. 

Section  11.  Be  it  further  enacted,  etc.,  That  the  Commis- 
sion shall  make  and  enforce  all  other  needful  rules  and  regu- 
lations, either  general  in  their  nature  or  applicable  to  particu- 
lar oil  fields,  covering  fully  the  duties  of  common  carrier  as 
herein  defined. 

Section  12.  Be  it  further  enacted,  etc.,  That  pipe  lines  com- 
ing under  the  provisions  of  this  Act  at  their  election,  may 
deliver  to  consignee  either  the  identical  crude  petrolum  re- 
ceived for  transporation  subject  to  such  consequence  of  mix- 
ing with  other  crude  petroleum  as  are  incident  to  pipe  line 
transporation,  or  they  may  make  delivery  from  their  com- 
mon stock  at  destination;  provided,  if  this  be  done  the  de- 
livery shall  be  of  substantially  like  kind  and  equal  market 
value. 

Section   13.     Be  it  further  enacted,  etc.,  That  when  any 


236  STATUTES— PIPE  LINES 

order  of  the  Railroad  Commission  of  Louisiana,  make  and 
entered  upon  its  records,  under  the  jurisdiction  and  powers 
vested  in  it  under  this  Act,  shall  be  objected  to  by  any  party 
in  interest,  any  such  party  in  interest  may,  within  three 
months  after  such  order  is  made  and  become  effective,  and 
not  thereafter,  file  in  a  Court  of  Competent  jurisdiction  at 
the  domicile  of  the  Commission  a  petition  setting  forth 
therein  the  particular  cause  or  causes  of  objection  to  the 
order  or  regulations  of  said  Commission  so  complained  of. 
All  such  cases  shall  be  tried  in  the  same  manner  as  ordinary 
civil  cases  and  shall  be  given  precedence  over  all  other  civil 
cases  in  the  said  court,  and  shall  be  heard  and  determined 
as  speedily  as  possible  to  the  end  that  the  public  interests 
may  not  suffer  by  reason  of  such  proceeding.  Any  such 
Court  shall  have  the  power  and  authority  to  affirm  the  order 
of  said  Commission  so  complained  of  or  to  change,  modify, 
alter,  or  set  aside,  the  same,  as  justice  may  require. 

Section  14.  Be  it  further  enacted,  ett.,  That  no  suit 
not  filed  within  the  delay  provided  by  the  foregoing  section 
of  this  Act  to  set  aside,  change,  alter  or  modify  any  order 
of.  the  Commission  shall  be  hereafter  filed  or  entertained, 
the  delay  fixed  by  the  preceding  section  of  this  Act  being 
hereby  declared  to  be  the  prescriptive  period  after  which  no 
such  suits  may  be  filed,  entertained  or  heard. 

Section  15.  Be  it  further  enacted,  etc.,  That  except  as 
herein  otherwise  provided,  the  rules  of  practice  and  pro- 
cedure now  or  that  may  be  hereafter  prescribed  and  en- 
forced with  respect  to  proceedings  before  the  said  Commis- 
sion in  order  matters  over  which  it  has  jurisdiction,  shall 
apply  to  and  govern  proceedings  before  said  Commission 
under  this  Act.  The  right  of  and  delays  for  appeal  from 
the  judgment  of  any  trial  court  rendered  hereunder,  and  the 


STATUTES— PIPE  LINES  237 

delay  therefor,  shall  be  the  same  as  now  or  may  hereafter 
be  fixed  by  the  Constitution  and  laws  of  the  State  of  Louisi- 
ana governing  appeals  in  other  cases  affecting  the  rules, 
orders  and  regulations  of  said  Commission. 

Section  16.  Be  it  further  enacted,  etc.,  That  any  common 
carrier  as  herein  defined,  who  shall  wilfully  violate  any  pro- 
vision of  this  act,  or  who  shall  fail  to  perform  any  duty  herein 
imposed,  or  to  obey  any  valid  order  of  the  Commission  when 
not  stayed  or  suspended  by  order  of  court,  shall  be  deemed 
guilty  of  a  misdemeanor  and  shall  be  subject  to  a  penalty 
of  not  less  than  One  Hundred  Dollars  ($100.00),  nor  more 
than  Five  Thousand  Dollars  ($5,000.00)  for  each  offense, 
such  penalty  to  be  recoverable  at  suit  of  the  Attorney  Gen- 
eral of  the  State  of  Louisiana  in  the  name  of  the  state  and 
for  its  own  use.  Such  penalty  may  also  be  recovered  by  and 
for  the  use  of  any  person,  firm,  corporation,  or  association 
of  persons,  against  whom  there  shall  have  been  an  unlawful 
discrimination  as  herein  defined;  such  suit  to  be  brought  in 
the  name  and  for  the  use  of  the  party  aggrieved.  Such  suit 
may  be  maintained  in  any  court  of  competent  jurisdiction 
having  due  regard  to  the  ordinary  statutes  of  venue. 

Section  17.  Be  it  further  enacted,  etc.,  That  for  the  wil- 
ful violation  of  any  of  the  povisions  of  this  Act  forbidden 
discrimination  on  the  part  of  common  carriers,  it  is  hereby 
provided  that  the  owners,  officers,  agents  or  employees  of 
such  carriers  who  may  be  guilty  of  such  discrimination  shall 
be  deemed  guilty  of  a  misdemeanor.  Each  violation  of  such 
provisions  shall  be  deemed  a  separate  offense,  and  upon  con- 
viction thereof,  the  party  violating  same  shall  be  fined  in  the 
sum  of  not  less  than  fifty  dollars  ($50.00),  nor  more  than 
One  Thousand  Dollars  ($1,000.00),  and  may  be  further 
punished  by  confinement  in  the  parish  jail  for  not  less  than 


238  STATUTES— PIPE  LINES 

ten  days  (10),  nor  more  than  six  months  (6)  at  the  discretion 
of  the  court.  The  venue  for  all  prosecutions  for  violation  of 
this  act  shall  be  in  the  District  Court  of  the  parish  in  which 
the  offense  is  committed. 

Section  18.  Be  it  further  enacted,  etc.,  That  this  Act 
shall  be  cumulatice  of  all  the  laws  of  this  state  which  are 
not  in  direct  conflict  herewith  regulating  the  control  of  com- 
mon carrier  pipe  line  companies. 

Section  19.  Be  it  further  enacted,  etc.,  That  if  any  sec- 
tion, part  of  section,  or  provision,  of  this  Act  shall  be  held 
unconstitutional,  or  for  any  other  reason  shall  be  held  to  be 
void,  or  if  more  than  one  section  or  provision  of  this  Act  shall 
be  held  to  be  void  or  unconstitutional,  such  holding  shall  not 
have  the  effect  or  nullifying  the  remaining  parts  of  this  Act, 
but  the  parts  not  so  held  to  be  void  or  unconstitutional  shall 
nevertheless  remain  in  full  force  and  effect. 

Section  20.  Be  it  further  enacted,  etc.,  That  all  laws  or 
parts  of  laws  in  conflict  with  the  provisions  of  this  Act  be, 
and  the  same  are,  hereby  repealed. 

R.  F.  WALKER, 

Speaker  of  the  House  of  Representatives. 

HEWITT  BOUANCHAUD, 
Lieutenant  Governor  and  President  of  the  Senate. 

Approved:    July  6,  1920. 

JOHN  M.  PARKER, 
Governor  of  the  State  of  Louisiana. 

A  True  Copy: 

JAMES  J.  BAILEY, 
Secretary  of  State. 


STATUTES— SCHOOL  LANDS  239 

Lease  of  School  Lands. 

ACT  NO.  142  of  1918. 

House  Bill  No.  401.  By  Mr.  Erbelding. 

Substitute  for  House  Bill  No.  281  by  Mr.  Erbelding. 

AN  ACT. 

To  amend  and  re-enact  Section  59  of  Act  No.  120  of  1916, 
entitled  "An  Act"  In  relation  to  free  public  schools  and  to 
regulate  public  education  in  the  State  of  Louisiana;  to  pro- 
vide a  revenue  for  the  same  and  to  impose  certain  penalties; 
to  apply  fines  imposed  by  district  courts  and  amounts  col- 
lected on  bonus  for  the  purpose  of  public  education;  to  pro- 
vide free  passage  of  school  children  over  certain  ferries, 
bridges  and  roads  and  to  punish  violation  of  such  pro- 
visions; and  to  amend  the  title  of  said  Act  by  adding  after 
the  word  "Provisions"  in  line  eight  of  said  title  the  follow- 
ing: To  authorize  the  sale,  of  the  sixteenth  section  lands, 
sell  the  timber;  lease  the  mineral  rights  on  these  lands  and 
to  designate  the  proper  officials  to  execute  the  contract  of 
lease  or  sale,  and  to  repeal  Acts  214  of  1912  and  39  of  1910 
and  all  other  laws  in  conflict  with  the  provisions  of  this 
Act. 

Section  1.  Be  it  enacted,  by  the  General  Assembly  of 
the  State  of  Louisiana,  that  Section  59  of  Act  120  of  the 
Session  of  the  Legislature  of  Louisiana  of  1916  be  amended 
and  re-enacted  so  as  to  read  as  follows: 

That  parish  school  boards  shall  have  authority  to  rent 
sixteenth)  section  lands,  sell  timber  or  lease  mineral  rights 
of  same,  by  resolution  of  the  boards  and  without  the 
authority  of  a  vote  of  the  electors  of  the  township  in  which 
the  lands  are  located.  All  leases  for  the  sixteenth  section 


240  STATUTES— STATE  LANDS 

lands  and  sales  of  timber  on  sixteenth  sections  shall  be 
executed  by  the  Superintendent  and  Treasurer  of  the  Par- 
ish school  board.  The  leases  of  mineral  rights  of  sixteenth 
section  lands  and  the  sale  of  sixteenth  section  lands  shall  be 
executed  by  the  parish  Treasurer  of  the  parish  in  which 
the  sixteenth  section  lands  are  located.  All  elections  to 
authorize  the  sale  of  sixteenth  section  lands,  shall  be  con- 
ducted by  the  parish  school  boards.  All  funds  realized  from 
these  sources  shall  be  placed  to  the  credit  of  the  current 
school  fund  of  the  parish  in  which  the  sixteenth  section  lands 
are  located. 

HEWITT  BOUANCHAUD, 
Speaker  of  the  House  of  Represetnatives. 

FERNAND  MOUTON, 
Lieutenant  Governor  and  President  of  the  Senate. 

Approved:     July  10,  1918. 

R.  G.  PLEASANT, 
Governor  of  the  State  of  Louisiana. 
A  true  copy: 

JAMES  J.  BAILEY, 
Secretary  of  State. 

Lease  of  State  Lands. 

ACT  NO.  30  of  1915. 

House  Bill  No.  22.  By  Mr.  Fontenot. 

AN  ACT. 

Authorizing  the  Governor  to  lease  lands,  including  lake 
and  river  beds  and  other  bottoms,  beloning  to  the  State, 
and  providing  the  terms  and  conditions  of  such  leases. 

Section  1.  Be  it  enacted  by  the  General  Assembly  of  the 
State  of  Louisiana,  that  the  Governor  be  and  is  hereby 


STATUTES— STATE  LANDS  241 

authorized  to  lease  any  lands,  including  lake  and  river  beds 
and  other  bottoms,  belonging  to  the  State  of  Louisiana,  for 
the  development  and  production  of  oil,  coal,  gas,  salt, 
sulphur,  lignite  and  other  minerals,  under  the  terms  and  con- 
ditions hereinafter  set  forth. 

Section  2.  Be  it  further  enacted,  etc.,  That  when  any 
person,  firm,  association  or  corporation  shall  desire  to  lease, 
as  hereinafter  provided,  any  of  such  lands  belonging  to  this 
State,  he,  they  or  it  shall  make  application  to  the  Governor 
in  writing  of  his  their  or  its  desire  to  lease  the  same,  giving 
the  description  or  character  of  the  land  in  such  application, 
accompanying  the  application  with  a  certified  check  for  fifty 
dollars  ($50.00)  to  be  deposited  with  the  Register  of  the 
State  Land  Office  as  evidence  of  the  good  faith  of  such  ap- 
plication, which  sum  is  to  be  returned  to  the  applicant 
should  he  bid  for  and  fail  to  secure  the  lease  of  such  land 
as  herein  provided. 

Section  3.  Be  it  further  enacted,  etc.,  That  upon  re- 
ceipt of  application  for  the  lease  of  land,  subject  to  the  pro- 
visions of  this  act,  accompanied  by  the  above  deposit,  the 
Governor  of  the  State  may  cause  the  Register  of  the  State 
Land  Office  to  make  an  inspection  of  the  land  sought  to  be 
leased  and  after  receiving  a  report  from  the  State  Land 
Office  as  to  the  nature  and  character  and  surroundings  of 
such  land  th$  Governor  may  cause  to  be  published  in  the 
official  journal  of  the  State  and  in  the  official  journal  of  the 
parish  wherein  such  land  is  located  an  advertisement  to 
be  published  for  a  period  of  not  less  than  fifteen  days  (15). 
setting  forth  therein  a  description  of  the  land  to  be  leased 
bv  the  State,  and  the  time  when  bids  therefor  will  be  received, 
a  short  summary  of  the  terms  and  conditions  of  the  lease  or 
leases  to  be  executed,  and,  in  his  discretion,  the  royalty  to 
be  demanded  should  he  deem  it  to  the  interests  of  the  State 


242  STATUTES— STATE  LANDS 

to  call  for  bids  on  the  basis  of  a  royalty  fixed  by  him;  pro- 
vided that  if  such  lands  be  situated  in  two  or  more  parishes 
such  advertisement  shall  appear  in  the  official  journals  of 
all  of  the  parishes  where  such  land  may  partly  lie. 

Section  4.  Be  it  further  enacted,  etc.,  That  at  the  date 
and  hour  mentioned  in  the  said  advertisement  for  the  con- 
sideration of  bids  for  the  said  lease  or  leases  the  same  shall 
be  opened  in  public  at  the  State  Capital  by  the  Governor,  who 
is  hereby  vested  with  full  authority  to  execute  said  lease  or 
leases,  to  the  highest  bidders  therefor  under  the  terms  and 
conditions  fixed  by  him;  provided,  that  no  lease  shall  be 
executed  for  less  than  one-eight  (^)  of  the  oil  or  other 
minerals  produced  or  for  less  than  two  hundred  dollars 
($200.00)  per  year  for  each  gas  well;  and  provided  further, 
that  the  Governor  shall  have  the  right  to  reject  any  and  all 
bids. 

Section  5.  Be  it  further  enacted,  etc.,  That  all  laws  and 
parts  of  laws  in  conflict  herewith  be  and  the  same  are  hereby 
repealed;  provided  that  nothing  herein  contained  shall  have 
the  effect  of  annulling  or  impairing  in  any  way  contracts  of 
lease  heretofore  executed  covering  any  such  property. 

L.  E.  THOMAS, 
Speaker  of  the  House  of  Representatives. 

THOMAS  C.  BARRETT, 
Lieutenant  Governor  and  President  of  the  Senate. 

Approved:  June  14,  1915. 

L.  E.  HALL, 

Governor  of  the  State  of  Louisiana. 
A  true  copy: 

W.  F.  MILLSAPS, 
Secretary  of  State. 


STATUTES— STATE  LANDS  243 

State  Lands. 

ACT  NO.  21  of  1915. 

House  Bill  No.  19.  By  Mr.  Locke. 

A  ACT. 

Approving  the  action  and  policy  of  the  Governor  of  the 
State  of  Louisiana  with  respect  to  the  oil,  gas  and  other 
mineral  wealth  of  the  State  and  to  ratify  and  confirm  all 
oil,  gas  and  mineral  leases  of  public  lands,  river  and  lake 
bottoms,  made  by  the  Governor  on  behalf  of  the  State  to 
various  individuals,  firms  and  corporations. 

Section  1.  Be  it  enacted  by  the  General  Assembly  of  the 
State  of  Louisiana,  That  the  action  and  policy  of  the  Gov- 
ernor of  Louisiana  with  respect  to  the  oil,  gas  and  other 
mineral  wealth  of  the  State  be  and  the  same  are  hereby  ap- 
proved. 

Section  2.  Be  it  further  enacted,  etc.,  That  the  action  of 
the  Governor  in  leasing  to  various  individuals,  firms  and 
corporations,  public  lands,  river  and  lake  bottoms  for  the 
production  therefrom  of  oil,  gas  and  other  minerals,  and  all 
lease  contracts  so  entered  into,  are  hereby  ratified  and  con- 
firmed; provided  that  nothing  in  this  Act  shall  be  deemed 
or  held  to  apply  to  any  lands  or  lake  bottoms  title  to  which 
was  in  contest  in  the  courts  on  or  before  May  15th,  1915. 

L.  E.  THOMAS, 
Speaker  of  the  House  of  Representatives. 

THOMAS  C.  BARRETT, 

Lieutenant  Governor  and  President  of  the  Senate. 
Approved:    June  10,  1915. 

L.  E.  HALL, 

Governor  of  the  State  of  Louisiana. 
A  true  copy : 

W.  F.  MILLSAPS, 

Secretarv  of  State. 


244  STATUTES— STATE  LESSEES 

INJUNCTIONS  WILL  NOT  ISSUE  AGAINST 
STATE  OR  ITS  LESSEES. 

Act  29,  E.  S.  1915,  P.  61. 

An  Act  prohibiting  the  issuance  of  writs  of  injunction  to 
restrain  the  exploitation  of  lands,  river  and  lake  bottoms,  for 
oil,  gas  or  other  minerals  where  such  lands  or  bottoms  are 
owned  or  claimed  by  the  State  and  where  the  State  has 
leased  the  same  for  such  exploitation ;  prescribing  the  remedy 
of  the  plaintiff  in  suits  brought  against  the  lessees,  officers 
or  employees  of  the  State;  providing  a  method  by  which  the 
defendant  in  any  such  suit  may  release  the  product,  or  the 
proceeds  of  the  sale  of  the  product,  obtained  from  such 
property;  providing  for  the  sale  of  such  oil  and  for  the  de- 
posit of  the  proceeds  of  such  sale  or  sales  at  interest  pending 
the  final  termination  of  the  litigation ;  and  repealing  all  laws 
in  conflict  or  inconsistent  herewith. 

Section  1.  Be  it  enacted  by  the  General  Assembly  of  the 
State  of  Louisiana.  That  the  writ  of  injunction  shall  not  lie 
in  any  suit  brought  against  the  lessees  of  the  State,  or  the 
officers  or  employees  of  the  State  to  restrain  the  exploitation 
for  oil,  gas,  or  other  mineral  lands,  river  bottoms,1  or  lake 
bottoms,  the  ownership  of  which  is  in  the  State,  but  in  all 
such  cases  the  remedy  of  the  plaintiff  in  such  suit  shall  be 
confined  to  a  demand  that  the  product  of  such  exploitation, 
or  the  proceeds  of  the  sale  thereof,  shall  be  judicially  seques- 
trated, until  the  rights  of  all  persons  asserting  any  lawful 
claim  to  such  product  or  proceeds  shall  be  determined. 

Section  2.  Be  it  further  enacted,  etc..  In  all  such  cases 
the  party  defendant  may  releave  the  product  or  the  proceeds 
of  the  sale  thereof  from  such  judicial  sequestration  on  giving 
a  bond  payable  to  the  Clerk  of  the  Court,  with  solven  and 


STATUTES— LEVEE  BOARD  LANDS  245 

sufficient  surety,  in  a  sum  equal  to  the  value  of  the  product 
or  proceeds,  such  bond  to  be  fixed  in  amount  and  approved 
by  the  court,  and  conditioned  to  require  the  defendant  to 
account  to  the  plaintiff  only  for  the  value  of  the  oil  at  the 
date  of  its  release,  with  legal  interests  from  said  date  in  the 
event  that  final  judgment  should  be  rendered  in  such  suit 
against  the  defendant. 

Section  3.  Be  it  further  enacted,  etc.,  That  at  any  time 
prior  to  the  release  of  oil  on  bond,  as  herein  provided,  the 
Judge  of  the  District  Court  in  which  any  such  suit  may  be 
pending,  may  on  application  by  either  party  to  such  suit,  and 
after  due  hearing,  issue  any  interlocutory  decree  ordering 
the  sheriff  to  sell  the  oil  so  sequestrated  at  the  highest  market 
price  then  obtainable  and  to  deposit  the  proceeds  of  such  sale 
or  sales  in  a  separate  account  in  such  bank  or  banks  to  be 
designated  by  court,  which  will  pay  the  highest  rate  of  in- 
terest on  such  deposits  pending  the  final  termination  of  the 
litigation. 

Section  4.  Be  it  further  enacted,  etc.,  That  all  laws  or 
parts  of  laws  inconsistent  or  in  conflict  herewith  be  and  the 
same  are  hereby  repealed. 

Gael  do  Levee  Board  Lands. 

ACT  No.  268  of  1908. 
House  Bill  No.  145.  By  Mr.  Smith. 

AN  ACT. 

Authorizing  the  Board  of  Commissioners  of  the  Caddo 
Levee  District  to  lease  or  farm  out  the  oil,  gas  or  mineral 
lands  within  the  limits  of  said  district  for  a  portion  of  the  oil 
gas  or  other  mineral  produced  or  mined  from  such  lands. 


246  STATUTES— LEVEE  BOARD  LANDS 

Section  1.  Be  it  eacted  by  the  General  Assembly  of  the 
State  of  Louisiana,  That  the  Board  of  Commissioners  of  the 
Caddo  Levee  District  be  and  they  are  hereby  authorized  and 
empowered  to  lease  or  farm  out  the  gas,  oil  or  mineral  lands 
within  the  limits  of  said  district,  and  to  accept  in  payment  of 
such  leases  a  portion  of  the  oil,  gas  produced  or  mined  from 
such  lands,  under  such  terms  and  conditions  as  said  Board 
of  Commissioners  may  deem  best  and  for  such  time  as  they 
may  find  proper,  provided  the  royalty  to  be  received'  shall 
not  be  less  than  one-eight  of  said  oil  or  gas. 

Section  2.  Be  it  further  enacted,  etc.,  That  the  said  Board 
of  Commissioners  of  said  Caddo  Levee  District  shall  be  and 
they  are  hereby  authorized  to  sell  and  dispose  of  such  oil,  gas 
or  other  mineral  so  received  by  them  from  such  lesaes  of  said 
lands  at  such  prices  and  at  such  times,  and  on  such  conditions 
as  they  may  deem  proper. 

Section  3.  Be  it  further  enacted,  etc.,  That  this  Act  shall 
take  effect  from  and  after  its  passage. 

H.  G  .DUPRE, 
Speaker  of  House  of  Representatives. 

P.  M.  LAMBREMONT, 

Lieutenant  Governor  and  President  of  the  Senate. 

Approved:  July  9,  1908. 

J.  Y.  SANDERS, 
Governor  of  the  State  of  Louisiana. 

A  true  copy: 

JOHN  T.  MICHEL, 

Secretary  of  State. 


STATUTES— LEASE  BY  MINORS  247 

Lease  of  Lands  of  Minors. 

ACT  No.  192  of  1916. 

House  Bill  No.  390.  By  Mr.  Dimick. 

AN  ACT. 

Authorizing  tutors  to  execute  mineral  leases  on  lands  be- 
longing to  their  wards  in  whole  or  in  part  on  the  advice  and 
recommendations  of  a  family  meeting. 

Section  1.  Be  it  enacted  by  the  General  Assembly  of  the 
State  of  Louisiana,  That  tutors  and  tuturixes  be  and  they  are 
hereby  authorized  and  empowered  to  execute  mineral  leases 
on  the  lands  belonging  to  their  wards  in  whole  or  in  part  when- 
ever authorized  to  do  so  on  the  advice  and  recommendations 
of  a  family  meeting  duly  called. 

Section  2.  Be  it  further  enacted,  etc.,  That  said  family 
meeting  shall  fix  the  terms  and  conditions  of  such  leases,  and 
its  recommendations  shall  on  being  approved  by  the  under 
tutor  be  submitted  to  the  court  for  approval  and  if  approved 
by  judgment  of  the  court,  the  same  shall  be  full  authority  for 
the  tutor  or  tutrix  as  the  case  may  be  to  enter  into  and  execute 
a  mineral  lease  on  the  property  of  such  minors  in  accordance 
with  the  terms  fixed  thereby. 

HEWITT  BOUANCHAUD, 

Speaker  of  the  House  of  Representatives. 

FERNAND  MOUTON, 
Lieutenant  Governor  and  President  of  the  Senate. 

Approved:  July  6,  1916. 

R.  G.  PLEASANT, 
Governor  of  the  State  of  Louisiana. 
A.true  copy: 

JAMES  J.  BAILEY, 

Secretary  of  State. 


248  STATUTES— LEASE  BY  MINORS 

Lease  of  Lands  of  Minors  and  Interdicts. 

ACT  No.  116  of  1920. 

Senate  Bill  No.  45.  By  Mr.  Warren. 

AN  ACT. 

To  authorize  tutors  and  curators  to  execute  mineral  leases 
on  lands  belonging  to  their  wards  in  whole  or  in  part  and  to 
execute  contracts  affecting  the  whole  or  any  part  of  the  min- 
erals in  and  upon  such  lands,  upon  the  advice  and  recommen- 
dation of  a  family  meeting,  duly  homologated;  and  repealing 
conflicting  and  inconsistent  laws,  especially  Act  No.  192  of 
the  General  Assembly  of  1916. 

Section  1.  Be  it  enacted  by  the  General  Assembly  of  the 
State  of  Louisiana,  That  the  tutors  of  minors  and  curators  of 
interdicts  may  execute  mineral  leases  upon  lands  owned  in 
whole  or  in  part  by  their  wards,  for  the  purpose  of  having 
them  explored,  developed,  drilled  and  mined  for  oil,  gas  and 
other  minerals,  and  may  execute  such  contracts  as  are  author- 
ized by  law  affecting  the  whole  or  any  part  of  the  share  of  the 
minors  or  interdicts  in  the  minerals,  including  oil  and  gas, 
upon,  in  and  under  the  lands  belonging  to  them  in  whole  or 
in  part,  whether  discovered  or  undiscovered,  upon  the  advice 
and  recommendation  of  a  family  meeting,  duly  homologated. 

Section  2.  Be  it  further  enacted,  etc.,  That  such  family 
meeting  shall  fix  the  terms  and  conditions  of  such  leases  or 
contracts,  and  its  recommendations,  when  approved  by  the 
under-tutor  or  under-curator,  and  homologated  by  the  Judge, 
or  by  the  Clerk  of  the  District  Court  in  case  there  be  no  oppo- 
sition, shall  be  full  authority  for  the  tutor  or  curator  to  exe- 
cute the  same  in  accordance  with  such  terms  and  conditions. 

Section  3.    Be  it  further  enacted,   etc.,  That  all  laws  or 


STATUTES— CROSS  LAKE  LANDS  249 

parts  of  laws  in  conflict  or  inconsistent  herewith,  especially 
Act  No.  192  of  the  General  Assembly  of  1916  approved  July  6, 
1916,  are  hereby  repealed. 

HEWITT  BOUANCHAUD, 
Lieutenant  Governor  and  President  of  the  Senate. 

R.  F.  WALKER, 

Speaker  of  the  House  of  Representatives. 

Approved:  July  7,  1920. 

JNO.  M.  PARKER, 
Governor  of  the  State  of  Louisiana. 
A  true  copy : 

JAMES  J.  BAILEY, 

Secretary  of  State. 

Cross  Lake  Lands. 

ACT  No.  149  of  1920. 

House  Bill  No.  157.  By  Mr.  Douglas. 

AN  ACT. 

To  amend  and  re-enact  Sectio  n  3  of  Act  31  of  the  General 
Assembly  of  the  State  of  Louisiana  for  the  year  1910,  being 
an  act  authorizing  the  Register  of  the  Land  Office  to  sell  and 
convey  to  the  City  of  Shreveport  the  bed  of  what  is  known  as 
Cross  Lake  in  the  Parish  of  Caddo,  and  fixing  the  terms  and 
conditions  of  such  sale,  reserving  to  the  State  of  Louisiana  all 
minerals  and  mineral  rights  on  and  under  said  land. 

Section  1.  Be  it  enacted  by  the  General  Assembly  of  the 
State  of  Louisiana  that  Section  3  of  Act  No.  31  of  the  Gen- 
eral Assembly  of  the  State  of  Louisiana,  for  the  year  1910, 
be  amended  and  re-enacted  so  as  to  read  as  follows: 


250  STATUTES— DRILLING  CONTRACTS 

Section  3.  Be  it  further  enacted,  etc.,  That  in  order  to  pro- 
tect the  public  health,  said  lands  so  conveyed  to  the  City  of 
Shreveport  shall  be  used  by  it  as  a  reservoir  or  storage  basin 
for  water  to  be  used  by  said  City  and  the  inhabitants  thereof, 
for  the  purpose  of  supplying  said  City,  its  citizens  and  other 
persons  visiting  said  City,  with  a  good  and  wholesome  supply 
of  water,  and  should  the  said  City  of  Shreveport  fail  to  utilize 
the  said  bed  of  said  lake  for  said  purposes,  on  or  before  July 
1,  1926,  or  afterwards  should  ever  cease  to  utilize  it  for  said 
purposes,  then  the  said  land  shall  revert  back  and  become  the 
property  of  the  State  of  Louisiana,  subject  to  the  repayment 
to  the  City  of  Shreveport  of  the  purchase  price,  but  without 
any  interest. 

R.  F.  WALKER, 
Speaker  of  the  House  of  Representatives. 

HEWITT  BOUANCHAUD, 
Lieutenant  Governor  and  President  of  the  Senate. 

Approved:  July  7,  1920. 

JAMES  J.  BAILEY, 

Secretary  of  State. 

Drilling  Contracts. 

ACT  No.  232  of  1916. 

Senate  Bill  No.  122.  By  Mr.  Leon  R.  Smith. 

AN  ACT. 

Relative  to  drilling  contracts  in  this  State;  providing  for 
the  bond  to  be  given  therein  for  the  protection  of  the  owner, 
subcontractor,  workmen,  laborers,  mechanics  and  furnishers 
of  materials,  for  the  recordation  of  the  same  and  the  proceed- 
ings to  be  had  thereunder. 


STATUTES— DRILLING  CONTRACTS  251 

Section  1.  Be  it  enacted  by  the  General  Assembly  of  the 
State  of  Louisiana,  That  every  contract  for  one  thousand 
dollars  or  more,  hereafter  made  or  entered  into  for  the  drill- 
ing of  any  well  for  oil,  gas  or  water  shall  be  reduced  to  writ- 
ing and  signed  by  all  parties  and  shall  be  recorded  in  the  of- 
fice of  the  Recorder  of  Mortgages  of  the  Parish  wherein  the 
said  work  is  to  be  executed,  before  the  day  fixed  on  which  said 
work  is  to  commence  and  not  later  than  thirty  days  after  the 
date  of  said  contract. 

Section  2.  Be  it  further  enacted,  etc.,  That  such  recorda- 
tion  in  the  office  of  the  Recorder  of  Mortgages  shall  create 
a  lien  and  privilege  on  the  well  and  appurtenances  and  appli- 
ances thereto  attached  for  its  equipment,  and  operation  and 
on  the  ground  immediately  next  to  the  well,  not  to  exceed  ten 
acres,  however;  provided  that  the  vendor's  lien  and  privilege 
on  such  appliances  and  appurtenances  that  have  not  lost  their 
identity  and  may  be  segregated  shall  remain  unimpaired  and 
retain  its  present  status  as  provided  for  by  existing  laws.  In 
the  event  the  owner  of  the  well  is  not  the  owner  of  the  ground 
on  which  the  well  is  located,  but  is  the  lessee  of  the  sam'e, 
then  the  lien  and  privilege  shall  attach  to  the  lease,  and  to  the 
owner's  other  rights  on  the  land. 

Section  3.  Be  it  further  enacted,  etc.,  That  the  owner  of 
said  well  shall  require  of  the  said  contractor  or  undertaker  a 
bond  with  good  and  solvent  surety  for  not  less  than  one-half 
the  amount  of  the  contract,  which  bond  shall  be  attached  to 
and  recorded  with  the  contract  in  the  mortgage  office  as  above 
set  forth,  and  the  conditions  of  the  bond  shall  be  the  true  and 
faithful  performance  of  the  contract  and  the  payment  of  all 
sub-contractors,  workmen,  laborers,  mechanics  and  furnishers 
of  materials  by  the  contractor  or  undertaker;  the  said  bond 
to  be  made  in  favor  of  the  owner,  sub-contractor,  workmen, 


252  STATUTES— DRILLING  CONTRACTS 

laborers,  mechanics  and  furnishers   of    materials   jointly   as 
their  interest  may  appear. 

Section  4.  Be  it  further  enacted,  etc.,  That  every  person 
having  a  claim  against  the  contractor  or  undertaker  shall, 
after  the  date  of  completion  of  said  work  by,  or  the  date  of 
default  of  the  contractor  or  undertaker,  file  a  sworn  state- 
ment thereof,  with  the  owner  and  record  a  sworn  statement 
thereof,  or  his  contract  if  it  has  been  reduced  to  writing,  in 
the  office  of  the  Recorder  of  Mortgages  for  the  Parish  in 
which  said  work  has  been  done,  within  thirty  days  after  the 
registry  of  notice  with  Recorder  of  Mortgages  of  the  said 
Parish  by  the  owner  of  his  acceptance  of  the  work,  until  which 
time  the  delay  to  file  privilege  will  not  run. 

Section  5.  Be  it  further  enacted,  etc.,  That  if  at  the  expira- 
tion of  the  said  thirty  days  there  are  no  such  recorder  claims 
filed,  the  Recorder  of  Mortgages  shall  ,upon  written  demand 
of  any  party  interested,  cancel  and  erase  from  the  books  of 
his  office  all  inscriptions  resulting  from  the  recordation  of 
said  contract  or  bond.  If  at  the  expiration  of  said  thirty  days 
there  are  such  recorded  claims  filed,  the  owner  shall  file  a 
petition  in  the  court  of  competent  jurisdiction  citing  said 
claimants,  the  contractor  or  undertaker,  against  whom  said 
claims  are  filed,  and  the  surety  of  said  bond,  and  the  owner 
shall  assert  whatever  claim  he  has  against  any  or  all  of  them 
in  said  petition  and  require  said  claimants  to  assert  their 
claims  and  all  said  claims  shall  be  tried  inconcttrsus.  In  the 
event  that  the  owner  has  a  claim  in  concursus  with  the  other 
claimants  who  have  a  lien  and  privilege  under  the  provisions 
of  this  Act,  they  shall  be  paid  in  preference  to  the  owner.  If 
no  objections  are  made  by  any  of  the  sai  dclaimants  to  the 
sufficiency  or  solvency  of  said  bond  within  ten  days  after  the 
filing  of  said  concursus,  the  Clerk  of  Court  shall  give  to  any 


STATUTES— DRILLING  CONTRACTS  253 

party  interested  a  certificate  to  that  effect  and  on  presenta- 
tion of  said  certificate  to  the  Recorder  of  Mortgages  he  shall 
cancel  and  erase  all  inscriptions  created  by  the  recordation 
of  said  contract,  bond  or  said  claims.  If  objections  are  made 
to  the  sufficiency  or  solvency  of  the  surety,  they  shall  be  tried 
summarily  and  if  the  surety  is  found  to  be  not  solvent  or  in- 
sufficient to  cover  the  full  amount  for  which  he  is  bound,  or  if 
the  owner  fails  to  exact  bond,  or  if  he  fails  to  cause  same  to  be 
recorded  in  the  office  of  the  Recorder  of  Mortgages  in  the  man- 
ner or  in  the  time  hereinabove  provided  the  owner  shall  be  in 
default  and  shall  be  liable  to  the  same  extent  as  the  surety 
would  have  been,  and  all  sub-contractors,  workmen,  laborers, 
mechanics  and  furnishers  of  materials  shall  have  a  first  privi- 
lege on  said  well  and  the  said  land  on  which  it  is  located,  and 
in  the  event  the  owner  of  the  well  does  not  own  the  said  land 
then  this  first  privilege  shall  exist  on  the  lease  or  other  right 
on  said  land  under  \vhich  the  well  is  drilled,  to  secure  the 
amount  due  them  when  their  claims  are  served  and  recorded 
as  herein  provided. 

Section  6.  Be  it  further  enacted,  etc.,  That  the  purpose  of 
this  act  is  to  require  owners  to  secure  bond  with  solvent  and 
sufficient  security  of  the  contractor  or  undertaker  for  the 
protection  of  all  parties  interested  in  the  contract,  and  as  their 
interest  may  appear,  in  which  said  surety  is  to  stand  in  place 
and  stead  of  a  defaulting  contractor  or  undertaker. 

Section  7.  Be  it  further  enacted,  etc.,  That  the  owner  shall 
not  make  the  last  payment  due  on  said  contract,  which  shall 
not  be  less  than  one-fifth  of  the  contract  price,  until  the  thirty 
days,  during  which  liens  may  be  filed  in  accordance  with  the 
provisions  of  this  Act,  have  elapsed. 

Section  8.     Be  it  further  enacted,  etc.,  That  all  laws  and 


254  STATUTES— MORTGAGE   OF  LEASES 

parts  of  laws  in  conflict  with  the  provisions  of  this  Act  be  and 
the  same  are  hereby  repealed. 

FERNAND  MOUTON, 
Lieutenant  Governor  and  President  of  the  Senate. 

HEWITT  BOUANCHAUD, 
Speaker  of  the  House  of  Representatives. 

Approved:  July  6,  1916. 

R.  G.  PLEASANT, 
Governor  of  the  State  of  Louisiana. 
A  true  copy : 

JAMES  J.  BAILEY, 

Secretary  of  State. 

Mortgage  of  Leases. 

ACT  No.  232  of  1910. 

Senate  Bill  No.  130. 

AN  ACT. 

Authorizing  the  lessees  or  the  owners  of  contracts  grant- 
ing the  right  to  explore  and  develop  lands  for  oil,  gas  and 
ether  minerals  to  mortgage  such  leases  or  contracts,  together 
with  such  improvements  as  they  may  place  on  such  leased 
lands,  and  to  issue  bonds  secured  by  such  mortgage,  and  to 
validate  industry  in  this  State,  mineral  leases  or  contract  un- 
der secure  bonds  or  other  forms  of  indebtedness. 

Whereas,  on  account  of  the  rapid  development  of  the  min- 
eral industry  in  this  State,  mineral  leases  or  contracts  under 
which  the  lessee  or  grantee  is  granted  the  right  or  given  the 
option,  at  his  cost  and  expense,  to  explore  and  develop  lands 
for  the  purpose  of  testing  the  mineral  charcter  thereof  and  of 


STATUTES— MORTGAGE  OF  LEASES  255 

mining  and  exploring  the  same  for  oil,  gas  and  other  min- 
erals, are  becoming  exceedingly  numerous  in  this  State ;  and, 

Whereas,  such  industries  will  be  encouraged  and  promoted 
by  facilitating  the  securing  of  capital  by  those  who  under- 
take such  mining  operations,  to  the  great  advantage  and  up- 
building of  the  State;  and, 

Whereas,  in  a  number  of  instances  the  owners  of  such 
leases  and  contracts,  in  order  to  secure  the  necessary  funds 
to  carry  on  such  development,  have  mortgaged  their  proper- 
ties to  secure  bonds  and  other  indebtedness  and  included  in 
suhc  mortgages  such  leases  and  contracts. 

Section  1.  Be  it  enacted  by  the  General  Assembly  of  the 
State  of  Louisiana,  That  it  shall  be  lawful  for  lessees  or  own- 
ers of  contracts  under  which  the  right  to  develop  and  explore 
lands  for  the  purpose  of  mining  for  and  securing  oil,  gas  and 
other  minerals,  to  mortgage  such  leases  or  contracts,  together 
with  all  buildings,  constructions  and  improvements  placed 
and  erected  thereon,  and  if  such  owners  or  lessees  so  desire, 
to  issue  bonds,  secured  by  such  mortgages,  such  bonds  to  be 
issued  in  such  amounts,  at  such  rate  of  interest  and  to  run  for 
such  length  of  time,not  exceeding  the  term  of  such  leases  or 
grants,  as  the  said  lessees  or  grantees  may  determine. 

Sction  2.  Be  it  further  enacted,  etc.,  That  all  mortgages 
heretofore  executed  for  the  purpose  of  securing  bonds  or  other 
evidence  of  indebtedness,  by  any  prson  or  corporation,  which 
include  and  are  made  to  cover  the  rights  and  equities  of  the 
mortgagor  in  mineral  leases  or  contracts,  granted  for  the  pur- 
pose of  securing  the  development  of  lands  for  oil,  gas  and 
other  minerals,  are  hereby  validated  to  the  extent  that  such 
leases  and  mineral  contracts  are  hereby  declared  to  be  suscep- 
tible of  mortgage. 


256  STATUTES— GAS  PLANTS 

Section  3.  Be  it  further  enacted,  etc.,  That  noting  in  this 
Act  or  in  such  mortgages  as  have  been  heretofore  executed 
and  are  by  this  Act  validated,  or  that  may  be  hereafter  exe- 
cuted by  virtue  of  this  Act,  shall  be  held  or  construed  in  any 
manner  to  affect,  diminish  or  destroy  the  lien  and  privilege 
of  the  lessor  or  grantee  upon  such  improvements  and  other 
works  for  the  payment  of  rent  and  the  enforcement  of  the 
other  stipulations  of  such  leases  or  contracts. 

Section  4.  Be  it  further  enacted,  etc.,  That  all  laws  or 
parts  of  laws  in  conflict  with  this  Act  are  hereby  repealed  and 
that  this  Act  shall  take  effect  from  and  after  its  passage. 

P.  M.  LAMBREMONT, 
Lieutenant  Governor  and  President  of  the  Senate. 

H.  G.  DUPRE, 
Speaker  of  the  House  of  Representatives. 

Approved:  July  6,  1910. 

J.  Y.  SANDERS, 
Governor  of  the  State  of  Louisiana. 
A  true  copy: 

JOHN  T.  MICHEL, 

Secretary  of  State. 

Municipalities  and  Parishes  Authorized  to  Acquire 
Gas  Plants,  etc. 

ACT  No.  70  of  1921. 

House  Bill  No.  132.  B  y  Mr.  Alexander. 

AN  ACT. 

Authorizing  parishes  and  municipalities  in  the  State  of 
Louisiana  to  own,  acquire,  construct,  or  lease  gas  manufac- 
turing plants,  distribution  systems,  pipe  lines,  and  other  prop- 
erties needed  for  supplying  their  inhabitants  with  either  or 


STATUTES— GAS   PLANTS  257 

both  artificial  and  natural  gas  and  to  operate  such  systems 
and  properties  in  the  interest  of  the  public;  authorizing  par- 
ishes and  municipalities  to  make  contracts  with  one  another 
for  the  purpose  of  supplying  gas  to  their  respective  inhabi- 
tants; authorizing  municipalities  to  extend  service  beyond 
their  corporate  limits;  authorizing  expropriation  of  privately 
owned  gns  properties  under  certain  conditions;  authorizing 
parishes  and  municipalities  to  make  such  contracts  with  pro- 
ducers of  natural  gas  as  may  be  necessary  in  order  to  obtain 
an  adequate  supply  to  meet  requirements;  authorizing  par- 
ishes and  municipalities  to  acquire  and  own  gas  leases  and 
lands  and  to  develop  same  when  deemed  expedient  so  to  do; 
authorizing  parishes  and  municipalities  to  mortgage  their  gas 
properties  and  to  pledge  all  revenues  derived  therefrom  and 
to  issue  bonds  secured  by  such  mortgages  and  pledges;  au- 
thorizing parishes  and  municipalities,  under  certain  condi- 
tions, to  levy  special  taxes  and  to  issue  bonds  against  same 
for  the  purpose  of  carrying  out  the  provisions  of  this  act,  and 
making  mandatory'  the  calling  of  special  elections  required 
therefor;  providing  for  the  submission  of  all  plans,  proposals 
or  ordinances  to  referendum  under  certain  conditions;  pro- 
viding for  the  creation  of  a  Gas  Commission  by  each  parish 
or  municipality  taking  advantage  of  this  act,  and  defining  its 
powers  and  duties ;  providing  that  the  commission  council  of 
cities  operating  under  Commission  form  of  government  and 
owning  and  operating  public  utilities,  shall  have  full  power 
to  carry  out  the  provisions  of  this  act,  and  to  repeal  all  laws 
or  parts  of  laws  in  conflict  herewith. 

Sec.  1.  Be  it  enacted  by  the  Legislature  of  Louisiana,  That 
all  parishes  and  municipalities  in  the  State  of  Louisiana  are 
hereby  authorized  to  construct,  acquire,  purchase,  lease,  own 
and  operate  gas  manufacturing  plants,  gas  distributing  sys- 
tems, g-ns  wells,  gas  lands,  gas  holdings  or  gas  leases  and  gas 


258  STATUTES— GAS  PLANTS 

pipe  lines  and  to  distribute  and  sell  gas  both  artificial  and 
natural  to  their  respective  inhabitants  and  said  parishes  and 
municipalities  are  hereby  further  authorized  to  make  con- 
tracts covering  a  period  of  years  with  each  other  relative  to 
the  distribution  and  sale  of  gas  within  their  respective  terri- 
tory and  to  distribute  and  sell  gas  to  their  respective  inhabi- 
tants and  to  the  inhabitants  of  other  parishes  and  municipali- 
tines  in  accordance  with  such  contracts;  and  to  make  con- 
tracts covering  a  period  of  years  with  owners  of  gas  plants, 
gas  wells,  gas  fields,  gas  lands,  gas  leases,  gas  holdings,  gas 
pipe  line  companies,  or  gas  distributing  companies  for  the 
purchase  or  use  of  some  or  all  of  their  products,  or  for  the 
leasing  or  purchase  of  gas  wells,  gas  fields,  gas  lands,  gas 
leases,  or  gas  holdings  for  the  purpose  of  drilling  and  oper- 
ating gas  wells;  provided  that  where  a  parish  does  not  avail 
itself  of  the  benefits  of  this  act  municipalities  therein  without 
their  corporate  limits. 

Section  2,  That  parishes  and  municipalities  that  take  ad- 
vantage of  the  authority  granted  in  this  act  are  hereby  author- 
ized to  pledge  the  revenue  derived  from  gas  manufacturing 
plants,  gas  distribution  systems,  gas  fields,  gas  lands,  gas 
leases,  gas  holdings,  gas  wells,  and  gas  pipe  lines  for  the  ac- 
quiition,  construction,  operation,  maintenance  and  gas  supply 
thereof,  and  may  mortgage  said  property  and  the  equipment 
accessory  thereto  belonging  to  said  parishes  and  municipali- 
ties and  issue  bonds  secured  by  such  pledge  and  mortgage. 

Section  3.  That  .such  parishes  and  municipalities  may  levy 
upon  themselves  a  special  tax  (not  to  exceed  five  mills  on  the 
dollar  per  annum)  in  order  to  raise  the  necessary  funds  with 
which  toacquire  or  construct,  maintain  and  operate  the  above 
described  properties,  provided  an  election  is  held  in  due  and 
legal  form  and  a  majority  both  in  number  and  amount  shall 
have  voted  in  favor  of  the  tax. 


STATUTES— GAS   PLANTS  269 

Section  4.  That  any  Parish  or  Municipality  electing 
through  its  governing  body  to  take  advantage  of  the  provi- 
sions of  this  act,  be  and  the  same  is  hereby  required  to  sub- 
mit all  plans,  proposals  or  ordinances  hereunder  to  a  referen- 
dum upon  petition  demanding  same  being  signed  by  ten  per 
cent  of  the  qualified  voters  thereof  presented  to  the  said  gov- 
erning body  of  the  Parish  or  Municipality  within  thirty  (30) 
days  after  publication  in  the  official  journal  of  the  parish  or 
municipality  of  final  action  by  said  governing  body  on  any 
plans,  proposals  or  ordinances  under  the  provisions  of  this 
act ;  and  that  a  majority  of  the  votes  cast  at  such  referendum 
shall  decide  for  or  against  the  adoption  of  the  said  plans,  pro- 
posals or  ordinances. 

Section  5.  That  such  parishes  or  municipalities  shall  have 
the  right  to  expropriate  existing  gas  plants,  gas  wells,  gas 
distributing  systems,  land,  rights  of  way  or  other  property 
needed  for  the  operation  of  such  plants  or  distributing  sys- 
tems, within  their  respective  boundaries,  such  expropriation 
proceedings  to  be  conducted  in  the  manner  already  provided 
by  law. 

Section  6.  That  such  parish  or  municipality,  through  its 
governing  body,  electing  to  take  advantage  of  the  authority 
granted  by  this  act,  shall  three  months  or  more  after  the  go- 
ing into  effect  of  this  act,  appoint  a  commission  to  be  desig- 
nated as  Gas  Commission,  who  alone  shall  be  vested  with  full 
power  and  authority  to  carry  out  all  the  provisions  of  this 
act  above  enumerated,  and  who  in  addition  thereto  shall  ex- 
ercise full  powers  of  administration,  supervision  and  control 
of  purchases  of  properties,  construction,  and  operation  of 
same,  and  to  fix  rates  not  to  exceed  cost  of  service  plus  a 
reasonable  reserve  fund  for  extensions,  additions  and  im- 
provements, plus  a  reasonable  amortization  fund  to  be  accu- 
mulated and  used  for  amortizating  all  mortgages  and  pledges 


260  STATUTES— GAS  PLANTS 

against  the  properties.  Said  Gas  Commission  shall  be  com- 
posed of  three  qualified  electors  and  shall  have  overlapping 
terms  of  office.  The  first  commissioners  shall  be  appointed 
or  chosen  by  the  said  governing  body  (Commission  Council, 
Town  Council  or  Police  Jury  as  the  case  may  be)  as  follows: 
one  to  serve  two  years,  one  to  serve  four  years,  and  one  to 
serve  six  years,  and  thereafter,  as  their  terms  expire,  their  suc- 
cessors shall  be  appointed  for  a  full  term  of  six  years.  The 
Commissioners  shall  serve  without  pay,  and  may  be  removed 
by  the  appointing  power  at  any  time  for  malfeasance,  neglect 
of  duty,  or  incompetence  after  ten  days  notice  to  commission- 
er to  be  removed,  and  full  and  free  opportunity  to  be  heard, 
publicly  in  his  own  defense — the  right  being  reserved  to  such 
commissioner  to  appeal  to  the  courts,  should  he  so  desire. 
Said  commission  shall  have  the  right  to  employ  all  labor,  ex- 
perts, etc.,  required  for  the  operation  of  the  system  or  systems 
under  its  control,  and  to  fix  their  compensation,  and  to  dis- 
charge them  at  will.  The  Gas  Commission  shall  have  full 
control  all  revenues  and  expenditures,  and  shall  select  its 
own  fiscal  agent  in  the  manner  provided  for  by  law ;  provided 
that  the  appointment  of  a  Gas  Commission  shall  not  be  neces- 
sary in  the  case  of  cities  operating  under  a  commission  form 
of  government  and  owning  and  operating  public  utilities,  but 
the  Commission  Council  of  such  cities  shall  have  full  powrer 
and  authority  to  carry  out  all  the  provisions  of  this  act  and 
perform  all  services  herein  delegated  to  the  Gas  Commission. 
Section  7.  That  all  laws  or  parts  of  laws  in  conflict  here- 
with be  and  the  same  are  hereby  repealed. 
Aprpoved:  By  the  Lieutenant-Governor  and  Acting  Gover- 
nor. November  17,  1921. 
A  true  copy : 

JAMES  J.  BAILEY, 

Secretary  of  State. 


STATUTES— GAS   PLANTS  261 

Gas  Plants. 

ACT  No.  37  of  1917. 

House  Bill  No.  9.  By  Mr.  Nix. 

AN  ACT. 

Prohibiting  any  person  from  wilfully  and  maliciously  de- 
stroying, damaging  or  injuring  or  rendering  unavailable,  or 
attempting  to  destroy,  damage,  injure  or  render  unavailable, 
any  gas,  electric,  telegraph  or  telephone  plant  or  interfering 
with  the  conveyance  or  transmission  of  the  product  thereof, 
and  providing  penalties  for  the  violation  of  this  Act. 

Section  1.  Be  it  enacted  by  the  General  Assembly  of  the 
State  of  Louisiana,  That  any  person  who  shall  wilfully  and 
maliciously  destroy,  damage  or  injure  or  render  unavailable, 
or  attempt  to  destroy,  damage,  injure  or  rendere  unavailable, 
any  gas,  electric,  telegraph  or  telephone  plant  or  interfere  with 
the  conveyance  or  transmission  of  the  product  thereof  shall, 
on  conviction,  be  punished  by  a  fine  of  not  less  than  five  hun- 
dred dollars,  nor  more  than  five  thousand  dollars  and  by  im- 
prisonment in  the  State  Penitentiary  for  not  less  than  one 
year,  nor  more  than  five  years. 

HEWITT  BOUANCHAUD, 

Speaker  of  the  House  of  Representatives. 

FERNAND  MOUTON, 
Lieutenant  Governor  and  President  of  the  Senate. 

Approved:  July  26,  1917. 

R.  G.  PLEASANT, 
Governor  of  the  State  of  Louisiana. 
A  true  copy : 

JAMES  J.  BAILEY, 

Secretary  of  State. 


262  STATUTES— DIVERTING  GAS 

Diverting  Gas. 

ACT  No.  208  of  1916. 

House  Bill  No.  257.  By  Mr.  W.  C.  Jones,  by  request. 

AN  ACT. 

To  prevent  the  diversion  of  electric  current  from  electric 
wire  cables;  or  gas  from  gas  pipes  or  mains;  or  water  from 
any  water  pipes  or  mains;  and  to  prevent  any  person  from 
altering  or  breaking  any  meter  for  measuring  and  registering 
the  amount  of  electric  current,  gas  or  water  passing  through 
any  such  meter;  and  to  provide  penalties  for  the  violation  of 
this  Act. 

Section  1.  Be  it  enacted  by  the  General  Assembly  of  the 
State  of  Louisiana,  That  whoever  shall,  knowingly,  and  for 
the  purpose  of  defrauding  or  injuring  the  owner  thereof,  take 
or  divert  electric  current  from  electric  wires  or  cables,  or  gas 
from  any  gas  pipes  or  mains,  or  water  from  any  water  pipes 
or  mains,  with  intent  to  use  or  waste  such  electric  current, 
or  gas,  or  water,  without  paying  therefor,  shall  be  guilty  of 
a  misdemeanor,  and  upon  conviction  shall  be  punshied  by  a 
fine  of  not  more  than  one  hundred  dollars,  or  by  imprison- 
ment in  the  Parish  Jail  for  not  more  than  three  months,  or 
both,  in  the  discretion  of  the  Court. 

Section  2.  Be  it  further  enacted,  etc.,  That  whoever  shall, 
knowingly  and  for  the  purpose  of  defrauding  or  injuring  the 
owner  thereof,  alter  or  break  any  meter  for  measuring  and 
registering  the  amount  of  electric  current,  gas  or  water  pass- 
ing through  such  meter,  so  as  to  make  such  meter  register 
less  than  it  would  when  in  good  order,  shall  be  guilty  of  a 
misdemeanor,  and  upon  conviction  shall  be  punished  by  a 
fine  of  not  more  than  one  hundred  dollars,  or  by  imprison- 
ment in  the  Parish  Jail  for  not  more  than  three  months,  or 
both,  in  the  discretion  of  the  Court. 


STATUTES— DIVERTING   GAS  263 

Section  3.  Be  it  further  enacted,  etc.,  That  all  laws  or 
parts  of  laws  in  conflict  or  inconsistent  with  this  act  be  and 
the  same  are  hereby  repealed. 

HEWITT  BOUANCHAUD, 
Speaker  of  the  House  of  Representatives. 

FERNAND  MOUTON, 

Lieutenant  Governor  and  President  of  the  Senate. 
Approved :  July  6,  1916. 

R.  G.  PLEASANT, 
Governor  of  the  State  of  Louisiana. 
A  true  copy : 

JAMES  J.  BAILEY, 

Secretary  of  State. 

Diverting  Gas, 

ACT  No.  63. 
Senate  Bill  No.  43.  By  Mr.  Clinton,  (by  request.) 

AN  ACT. 

Making  it  unlawful  to  prevent  electric  current,  water  or 
gas  from  passing  through  any  meter  or  meters;  to  prevent  a 
meter  from  duly  registering  the  quantity  of  electricity,  water 
or  gas  supplied,  or  interfering  with  its  proper  action  or  just 
registration;  to  divert  any  electric  current  from  any  wire  or 
cable  or  water  or  gas  from  any  pipe  or  main  without  the  con- 
sent of  the  manufacturer  or  seller  thereof;  to  retain  posses- 
sion of  or  refuse  to  deliver  any  meter,  lamp  or  other  appli- 
ances to  the  owner  thereof  with  the  intent  to  defraud  such 
owner ;  defining  what  shall  be  prima  facie  evidence  of  a  viola- 
tion of  the  provisions  hereof ;  making  any  violation  of  the  pro- 
visions of  this  act  a  misdemeanor  and  providing  a  penalty 
therefor;  and  repealing  all  laws  in  conflict  therewith,  partic- 
ularly Act  154  of  the  General  Assembly  of  the  State  of  Louisi- 
ana of  the  vear  1900. 


264  STATUTES— DIVERTING   GAS 

Section  1.     Be  it  enacted  by  the  Legislature  of  Louisiana, 
That  whoever,  intentionally,  by  any  means  or  device,  prevents 
electric  current,  water    or    gas    from    passing   through    any 
meter  or  meters  belonging  to  any  person,  firm  or  corporation 
engaged  in  the  manufacture,  sale  or  distribution  of  electricity, 
water  or  gas  for  lighting,  power  or  other  purposes,  furnished 
such  person,  to  register  the  current  or  electricity,  water  or 
gas,  passing  through  meters,  or  intentionally  prevents  the 
meter  from  duly  registering  the  quantity  of  electricity,  water 
or  gas  supplied,  or  in  any  way  interferes  with  its  proper  ac- 
tion or  just  registration,  or,  without  the  consent  of  such  per- 
son, firm  or  corporation,  intentionally  diverts  any  electrical 
current  from  any  wire  or  cable,  or  water  or  gas  from  any  pipe 
or  main  of  such  person,  firm  or  corporation,  or  otherwise  in- 
tentionally uses,  or  causes  to  be  used,  without  the  consent  of 
such  person,  firm  or  corporation,  any  electricity  or  gas  man- 
ufactured, or  water  produced  or  distributed,  by  such  person, 
firm  or  corporation,  or  any  person,  firm  or  corporation  who 
retains  possession   of,   or    refuses   to   deliver   any   meter   or 
meters,  lamp  or  lamps,  or  other  appliances  which  may  be,  or 
may  have  been,  loaned  them  by  any  person,  firm  or  corpora- 
tion for  the  purpose  of  furnishing  electricity,  water  or  gas, 
through  the  same,  with  the  intent  to  defraud  such  person, 
firm  or  corporation,  shall  be  guilty  of  a  misdemeanor  and, 
upon  conviction,  shall  be  punished  by  a  fine  of  not  less  than 
ten  dollars  and  not  more  than  one  hundred  dollars,  or  by  im- 
prisonment in  the  parish  jail  not  more  than  three  months,  or 
by  both  fine  and  imprisonment  in  the  discretion  of  the  court. 

Section  2.  That  the  presence  at  any  time  on  or  about  such 
meter  or  meters,  wire,  cable,  pipe  or  main  of  any  device  or 
pipe  or  wire  resulting  in  the  diversion  of  electric  current, 
water  or  gas,  as  above  defined,  or  resulting  in  the  prevention 
of  the  proper  action  or  just  registration  of  the  meter  or  meters 


STATUTES— DIVERTING    GAS— PIPE    LINE   COMPANIES  265 

as  above  set  forth,  shall  constitute  prima  facie  exidence  of 
knowledge  on  the  part  of  the  person,  firm  or  corporation 
having  custody  or  control  of  the  room  or  place  where  such 
device  or  pipe  or  wire  is  located,  of  the  existence  thereof  and 
the  effect  thereof,  and  shall  constitute  prima  facie  evidence 
of  the  intention  on  the  part  of  such  person,  firm  or  corpora- 
tion to  defraud  and  shall  bring  such  person,  firm  or  corpora- 
tion prima  facie  within  the  scope,  meaning  an  dpenaltiee  of 
this  act. 

Section  3.  That  all  laws  or  parts  of  laws  in  conflct  here- 
with and  particularly  Act  154  of  the  General  Assembly  of 
the  State  of  Louisiana  for  the  year  1900  be  and  the  same  are 
hereby  repealed. 

Approved:  By  the  Lieutenant  Governor  and  Acting  Gover- 
nor. 

ovember  17,  1921. 
A  true  copy : 

JAMES  J.  BAILEY,  . 

Secretary  of  State. 

Fuel  Pipe  Line  Companies  May  Borrow  Money, 
etc. 

ACT  No.  172  of  1902,  p.  326. 

An  act  to  authorize  Fuel  Oil  Pipe  Line  Companies,  organ- 
ized under  the  laws  of  this  State,  to  contract  debt  and  borrow 
money  for  the  purpose  of  contracting,  repairing  or  acquiring 
property-  or  franchises  connected  with  the  business  of  such 
Fuel  Oil  Pipe  Line  Companies ;  to  issue  bonds  and  other  obli- 
gations secured  by  mortgage  or  other  pledge  on  the  franchises 
and  the  property,  real  and  personal,  the  income,  revenues, 
contributions  and  receipts  of  such  Fuel  Oil  Pipe  Lines  Com- 
panies; to  prescribe  the  terms,  time  and  place  for  the  pay- 
ment of  such  bonds  or  other  obligations,  and  to  vest  in  the 


266     STATUTES— PIPE  LINE  CO.'S— CONTAMINATION  OP  WATERS 

Board  of  Directors,  Trustees,  Managers,  or  Commissioners, 
power  to  sell,  pledge  or  otherwise  dispose  of  such  bonds  or  to 
contract  such  obligations. 

Section  1.  Be  it  enacted  by  the  General  Assembly  of  the 
State  of  Louisiania,  That  any  Fuel  Oil  Pipe  Line  Company 
organied  under  the  laws  of  this  State,  whether  under  or  by 
special  or  general  act,  may  borrow  from  time  to  time  sums  of 
money  as  may  be  required  for  construction  or  repair,  for  the 
acquisition  of  property  or  franchises,  and  for  this  purpose 
may  issue  bonds  or  other  obligations  secured  by  mortgage  or 
pledge  as  incomes,  revenues,  contributions  and  receipts  of 
said  company  ,and  payable  in  such  terms  and  at  such  times 
and  places  as  the  Board  of  Directors  Trustees,  Managers  or 
Commissioners  may  direct  or  designate,  with  power  to  sell, 
pledge  or  otherwise  dispose  of  said  bonds,  on  such  terms  as 
the  company  may  direct  or  deem  expedient. 

Contamination  of  Waters. 

ACT  No.  213  of  1906. 

By  Mr.  Barrett,  by  request.  Senate  Bill  No  .113. 

AN  ACT. 

To  protect  the  water  supply  of  cities  and  prohibiting  any 
contamination  thereof  or  any  acts  tending  to  contaminate 
same  and  providing  punishment  for  the  violation  of  these 
acts  : 

Section  1.  Be  it  enacted  by  the  General  Assembly  of  the 
State  of  Louisiana,  That  it  shall  be  and  is  hereby  declared 
unlawful  and  a  misdemeanor  to  knowingly  and  wilfully  con- 
taminate any  stream,  wells,  lake,  pond  or  body  of  water  from 
which  the  public  water  supply  of  any  city  of  this  State  is  taken, 
by  knowingly  and  wilfully  placing  or  causing  to  be  placed 
therein  the  dead  body  of  any  animal  or  animals  or  any  offen- 


STATUTES— CONTAMINATION    OP    WATERS  267 

sive  or  filthy  matter,  or  from  doing  any  other  act  tending  to 
corrupt,  injure  or  contaminate  said  water  supply;  or  for  any 
one  knowingly  and  wilfully  to  permit  to  escape  or  drain  from 
his  premises  into  said  water  supply  any  substance  or  fluid 
tending  to  contaminate  or  injure  said  water  supply,  or  wil- 
fully and  knowingly  to  permit  to  escape  from  his  premises  or 
property  any  sewerage  or  fluid  into  the  said  water  supply, 
that  would  injure  the  quality  of  the  said  water  or  contamin- 
ate it. 

Section  2.  Be  it  further  enacted,  etc.,  That  for  each  and 
every  violation  of  this  statute  there  shall  be  imposed  a  fine 
of  not  less  than  $5.00  nor  more  than  $100.00  or  imprisonment 
not  less  than  one  day  or  more  than  30  days  in  the  parish  jail ; 
one  or  both  at  the  discretion  of  the  court. 

J.  Y.  SANDERS, 
Lieutenant  Governor  and  President  of  the  Senate. 

J.  W.  HYAMS, 
Speaker  of  the  House  of  Representatives. 

Approved:  July  12,  1906. 

NEWTON  C.  BLANCHARD, 
Governor  of  the  State  of  Louisiana. 
A  true  copy: 

JOHN  T.  MICHEL, 

Secretary  of  State. 

Contamination  of  Waters. 

ACT  No.  183  of  1910. 

House  Bill  No.  19. 

AN  ACT. 

To  protect  the  rice  planters  and  owners  of  the  canals  who 
use  water  for  irrigation  purposes  against  tthe  pollution  of 


268  STATUTES— CONTAMINATION  OF  WATERS 

the  streams  by  salt  water,  oil  and  other  substances,  and  also 
to  protect  the  fish  in  said  streams  and  making  it  a  misde- 
meanor to  contamniate  said  streams  by  draining  or  permit- 
ting the  said  water  to  be  drained  in  said  streams. 

Section  1.  Be  it  enacted  by  the  General  Assembly  of  the 
State  of  Louisiana,  That  it  is  hereby  declared  unlawful  and 
a  misdemeanor  for  any  officer,  manager,  o  remployee  of  any 
corporation  or  any  person  acting  for  himself,  or  for  any  one 
else  to  knowingly  and  wilfully  empty  or  drain  into,  or  permit 
to  be  drained  from  any  pumps,  reservoir,  wells,  or  oil  fields 
into  any  of  the  natural  streams  or  drains  of  the  said  State, 
from  which  water  is  taken  for  irrigation  purpose  any  oil,  salt 
water,  or  other  noxious  or  poiisonous  gases  or  substances 
which  would  render  said  water  unfit  for  irrigation  purposes 
or  would  destroy  the  fish  in  said  stream.  Provided,  that  the 
operators  or  owners  of  wells  shall  have  the  right  to  turn  their 
water  from  wells,  reservoirs  or  tanks  into  the  rivers,  bayous, 
streams  or  other  waterways,  between  September  1st,  and 
March  1st  of  each  year,  and  are  prohibited  from  doing  so  be- 
tween March  1st  and  September  1st  of  each  year.  Said  own- 
ers or  operators  shall  provide  reservoirs  or  tanks  and  shall 
keep  the  water  out  of  the  said  streams  of  waterways  during 
the  close  season,  and  shall  pay  for  a  watchman  night  and  day 
to  prevent  leaks,  breaks,  secret  pipes  or  violations  of  this  law. 
It  shall  also  be  the  duty  of  said  operators  or  owners  to  plain- 
ly indicate  to  whom  each  reservoir  or  tank  belongs  by  post- 
ing same,  and  shall  be  subject  to  inspection  at  all  times  by 
the  legal  authorities. 

Section  2.  Be  it  further  enacted,  etc.,  That  for  each  and 
every  violation  of  said  Act  there  shall  be  imposed  upon  any 
person  so  offending,  whether  acting  in  his  individual  capacity 
or  for  others,  a  fine  not  less  than  one  hundred  dollars 
($100.00)  nor  more  than  two  thousand  dollars  ($2000.00), 


STATUTES— CONTAMINATION    OF   WATERS— TAXATION         269 

or  imprisonment  in  the  parishi  jail  not  less  than  thirty  days 
nor  more  than  three  months  in  the  discretion  of  the  court 
trying  the  same. 

Section  3.  Be  it  further  enacted,  etc.,  That  for  each  and 
every  day  that  said  oil,  salt  water,  or  other  substances  is  per- 
mitted to  flow  into  such  streams,  shall  constitute  a  separate 
offense. 

Section  4.  Be  it  further  enacted,  etc.,  That  all  laws  and 
parts  of  laws  in  conflict  herewith  are  hereby  repealed. 

H.  G.  DUPRE, 
Speaker  of  the  House  of  Representatives. 

P.  M.  LAMBREMONT, 
Lieutenant  Governor  and  President  of  the  Senate. 

Approved:  July  6,  1910. 

J.  Y.  SANDERS, 

Governor  of  the  State  of  Louisiana. 
A  true  copy: 

JOHN  T.  MICHEL, 

Secretary  of  State. 

Constitution  of  1921 — Article  X. 

Section  4.  The  following  property,  and  no  other,  shall  be 
exempt  from  taxation:********** 

For  ten  years  from  date  of  completion,  all  pipe  lines, 
pumping  plants  and  other  property  actually  used  in  the  trans- 
portation and  distribution  of  natural  gas,  for  fuel  and  light 
purposes,  wholly  within  this  State;  provided,  such  line  shall 
have  been  constructed  after  the  adoption  of  this  Constitution 
and  shall  have  been  completed  prior  to  Jan.  1,  1926;  and, 
provided,  this  exemption  shall  not  apply  to  any  property 


270  STATUTES— TAXATION 

within  a  municipality,  nor  to   pipe    lines    built   to    cities    or 
towns  already  supplied  with  natural  gas. 

Section  21.  ******Taxes  may  be  levied  on  Natural  re- 
sources severed  from  the  soil  or  water,  to  be  paid  porportion- 
ately  by  the  owners  thereof  at  the  time  of  severance.  Such 
natural  resources  may  be  classified  for  the  purposes  of  taxa- 
tion and  such  taxes  predicated  upon  either  the  quantity  or 
value  of  the  product  at  the  time  and  place  where  it  is  severed. 
No  severance  tax  shall  be  levied  by  any  praish  or  other  local 
subdivision  of  the  State. 

No  further  or  additional  tax  or  license  shall  be  levied  or 
imposed  upon  oil  or  gas  leases  or  rights,  nor  shall  any  addi- 
tional value  be  added  to  the  assessment  of  land,  by  reason  of 
the  presence  of  oil  or  gas  therein  or  their  production  there- 
from. Provided,  that  until  the  Legislature  shall  have  enacted 
laws  carrying  into  effect  the  provisions  of  this  section,  all 
existing  laws  relating  to  severance  taxes  or  licenses,  and  to 
the  assessment  and  taxation  of  land  producing  oil  or  gas 
shall  be  and  remain  in  full  force  and  effect.  Notwithstanding 
any  legislative  appropriation  heretofore  made  or  any  alloca- 
tion in  this  Constitution  made,  the  Legislature  shall  allocate 
a  portion  of  the  severance  tax  on  oil  or  gas  not  less  than  one- 
fifth  of  the  amount  collected  therein  to  the  parish  from  within 
which  such  tax  is  collected;  provided,  that  the  amount  thus 
allocated  shall  not  exceed  two  hundred  thousand  dollars 
($200,000.00)  to  any  parish  in  any  one  year. 

The  Legislature  shall  provide  for  the  distribution  of  the 
funds  allocated  to  the  parishes  under  this  provision  among 
the  governing  authorities  having  jurisdiction  over  the  terri- 
tory froni  within  which  such  resources  are  severed  and  tax 
collected. 


CONSERVATION  RULES  271 

APPENDIX  "B." 

RULES  AND  REGULATIONS  OF  THE  DEPART- 
MENT  OF  CONSERVATION. 

Rules,  Regulations  and  Requirements  Governing 

the  Conservation  of  Natural  Gas  and 

Crude  Oil  or  Petroleum. 

Oil  or  Petroleum. 

Rule  1.  Waste  Prohibited.  Natural  gas  and  crude  oil  or 
petroleum  shall  not  be  produced  in  the  State  of  Louisiana 
in  such  manner  and  under  such  conditions  as  to  constitute 
waste. 

Rule  2.  Waste  Defined-Protection.  The  term  "waste" 
as  used  herein^  in  addition  to  its  ordinary  meaning,  shall 
include  economic  waste,  underground  waste,  surface  waste, 
and  waste  incident  to  the  production  of  crude  oil  or  petro- 
leum in  excess  of  transportation,  storage,  or  marketing  facil- 
ities. 

Rule  3.  Gas  To  Be  Confined-Strata  To  Be  Protected. 
Whenever  natural  gas  in  commercial  quantities,  or  a  gas 
bearing  stratum  known  to  contain  natural  gas  in  such  quan- 
tities is  encountered  in  any  well  drilled  for  oil  or  gas  in  this 
State  such  gas  shall  be  confined  to  its  original  stratum  until 
such  time  as  the  same  can  be  produced  and  utilized  without 
waste,  and  all  such  strata  shall  be  adequately  protected  from 
infiltrating  waters. 

Rule  4.  Approved  Methods  Of  Preventing  Waste  To  Be 
Used.  All  operators,  contractors,  or  drillers,  pipe  line  com- 
panies, gas  distributing  companies  or  individuals,  drilling 


272  CONSERVATION  RULES 

for  or  producing  crude  oil  or  natural  gas,  or  piping  oil  or 
gas  for  any  purpose,  shall  use  every  possible  precaution  in 
accordance  with  the  most  approved  methods,  to  stop  and 
prevent  waste  of  oil  or  gas,  or  both,  in  drilling  and  produc- 
ing operations,  storage,  or  piping  or  distributing,  and  shall 
not  wastefully  utilize  oil  or  gas,  or  allow  same  to  leak  or 
escape  from  natural  reservoirs,  wells,  tanks,  containers,  or 
pipes. 

Rule  5.  Notice  of  Intention  To  Drill,  Deepen,  Pull, 
Plug,  or  Abandon.  Written  notice  to  drill,  deepen,  pull  or 
plug  a  well  or  wells  shall  be  given  to  the  Department  of 
Conservation,  made  out  on  such  blank  forms  as  provided  or 
designatad  by  the  Department  of  Conservation  for  that  pur- 
pose. 

Rule  6.  A  Complete  And  Accurate  Log  Of  Each  Well 
Drilled  or  Deepened  Required.  Oil  and  gas  operators  in 
Louisiana  shall  keep  an  accurate  and  complete  log  of  each 
and  every  well  they  drill  or  deepen,  and  furnish  the  De- 
partment of  Conservation  with  two  typewritten  copies  of 
same,  not  later  than  ten  days  after  the  completion  of  any 
and  all  such  work. 

Rule  7.  Plugging  Dry  And  Abandoned  Wells.  All  dry 
or  abandoned  wells  must  be  plugged  by  confining  all  oil,  gas 
or  water  in  the  strata  in  which  they  occur  by  the  use  of  mud- 
laden  fluid,  and  in  addition  to  mud-laden  fluid,  cement  and 
plugs  may  be  used.  These  wells  must  first  be  thoroughly 
cleaned  out  to  the  bottom  of  the  hole  and  before  the  casing 
is  removed  from  the  hole,  the  hole  must  be  filled  from  the 
bottom  to  the  top  with  mud-laden  fluid  of  maximum  density 
and  which  shall  weigh  at  least  25  per  cent  more  than  an 
equal  volume  of  water,  unless  the  Department  of  Conserva- 
tion directs  that  some  other  method  shall  be  used. 


CONSERVATION  RULES  273 

Rule  8.  Proper  Anchorage  To  Be  Laid.  Before  >any 
well  is  begun  in  any  field  where  it  is  not  known  that  high 
pressure  does  not  exist,  proper  anchorage  shall  be  laid,  so 
that  the  control  casing-head  may  be  used  on  the  two  outer 
strings  of  casings  at  all  times,  and  this  type  of  casing-head 
shall  be  kept  in  constant  use  unless  it  is  known  from  previous 
experience  and  operations  on  wells  adjacent  to  the  one  being 
drilled  that  high  pressure  does  not  exist  or  will  not  be  en- 
countered therein. 

Rule  9.  Equipment  For  Conserving  Natural  Gas  To  Be 
Provided  Before  "Drilling  in."  In  all  proven  or  well  de- 
nned gas  fields,  or  where  it  can  be  reasonably  expected  that 
gas  in  commercial  quantities  will  be  encountered,  adequate 
preparation  shall  be  made  for  the  conservation  of  gas  before 
"drilling  in"  any  well;  and  the  gas  sands  shall  not  be  pene- 
trated until  equipment  (including  mud  pumps,  lubricators, 
etc.)  for  "mudding  in"  all  gas  strata'  or  sands,  shall  have 
been  provided. 

Dule  10.  Separate  Slush  Pit  To  Be  Provided.  Before 
Commencing  to  drill  a  well,  a  separate  slush  pit  or  pump 
hole  shall  be  constructed  by  the  owner,  operator  or  contrac- 
tor for  the  reception  of  all  pumpings  from  clay  or  soft  shale 
formations  in  order  to  have  the  same  on  hand  for  the  mak- 
ing of  mud-laden  fluid. 

Rule  11.  Wells  Not  To  Be  Permitted  To  Produce  Oil  and 
Gas  From  Different  Strata.  No  well  shall  be  permitted  to 
produce  both  Oil  and  Gas  from  different  strata  unless  it  be 
in  such  manner  as  to  prevent  waste  of  any  character  to  either 
product.  Therefore,  if  a  stratum  should  be  encountered 
bearing  gas  or  the  owner,  operator,  or  contractor  should  go 
deeper  in  search  for'  either  gas  or  oil  bearing  sands,  the 
stratum  first  penetrated  and  likewise  each  and  every  sand 


274  CONSERVATION  RULES 

in  turn,  shall  be  closed  separately,  and  if  it  is  not  wanted 
for  immediate  use,  it  shall  be  securely  shut  in  so  as  to  pre- 
vent waste,  either  open  or  underground. 

Rule  12.  Strata  To  Be  Sealed  Off.  No  Well  shall  be 
drilled  through  or  below'  any  oil,  gas  or  water  stratum  with- 
out sealing  off  such  stratum  or  the  contents  thereof,  after 
passing  through  the  sand,  either  by  the  mud-laden  fluid  pro- 
cess or  by  casing  and  packers,  regardless  of  volume  or 
thickness  of  sand. 

Rule  13.  Mud-Laden  Fluid  To  Be  Applied.  No  gas  sand 
or  stratum  upon  being  penetrated  shall  be  drilled  or  left 
open,  except  at  the  discretion  of  the  Department  of  Conser- 
vation without  the  application  of  mud-laden  fluid  to  prevent 
the  escape  of  gas  while  further  drilling  in  or  through  such 
sand  or  stratum. 

Rule  14.  Fresh  Water  To  Be  Protected.  Fresh  Water, 
whether  above  or  below  the  surface,  shall  be  protected  from 
pollution,  whether  in  drilling  or  plugging. 

Rule  15.  Gas  to  Be  Separated  From  Oil.  No  gas  found 
in  the  upper  part  of  a  level  of  sand  which  can  be  separated 
from  the  oil  in  the  lower  part  of  same  sand  or  in  a  lower 
or  different  sand  shall  be  allowed  or  used  to  flow  oil  to  the 
surface  and  all  gas,  so  far  as  it  is  possible  to  do  so,  shall  be 
separated  from  the  oil  and  securely  protected. 

Rule  16.  Separating  Device  To  Be  Installed  Upon  Order 
Of  The  Department  of  Conservation.  Where  oil  and  gas  are 
found  in  the  same  stratum  and  it  is  impossible  to  separate 
the  one  from  the  other,  the  operator  shall,  upon  being  so 
ordered  by  the  Department  of  Conservation,  install  a  sep- 
arating device  of  approved  type,  which  shall  be  kept  in 
place  and  used  as  long  as  necessity  therefore  exists,  and 


CONSERVATION  RULES  275 

after  being  installed  such  device  shall  not  be  removed,  nor 
the  use  thereof  discontinued  withuot  the  consent  of  the  De- 
partment of  Conservation. 

Rule  17.  Notification  of  Fires  and  Breaks  or  Leaks  in 
Lines.  AH  drillers,  operators,  pipe  line  companies,  and  in- 
dividuals operating  oil  and  gas  wells  or  pipe  lines  shall  im- 
mediately notify  the  Department  of  Conservation  by  tele- 
graph or  telephone  and  by  letter  of  all  fires  which  iccur  at 
oil  and  gas  wells  or  oil  tanks  owned,  operated,  or  controlled 
by  them  or  in  their  property,  and  shall  immediately  report 
all  tanks  struck  by  lightning  and  any  other  fires  which  de- 
stroy crude  oil  or  natural  gas,  and  shall  immediately  report 
in  the  manner  heretofore  described  any  breaks  or  leaks  in 
the  tanks  or  pipe  lines  from  which  oil  and  gas  are  escaping. 
In  all  reports  of  fires,  breaks,  or  leaks  in  pipes,  or  other 
accidents  of  this  nature,  the  location  of  the  well,  tank  or 
line  break  shall  be  given,  showing  location  by  quarter,  sec- 
tion, township  and  range. 

Rule  18.  Drilling  Records  to  be  kept  at  Well  during  the 
process  of  drilling.  All  operators,  contractors,  or  drillers, 
shall  keep  ?t  each  wrell  accurate  records  of  the  drilling,  re- 
drilling,  deepening  of  all  wells,  showing  all  formations  drill- 
ing through,  casing  used  and  other  information  in  connection 
with  drilling  and  operation  of  the  propert  yand  any  and  all  of 
its  information  shall  be  furnished  to  be  Department  of  Con- 
servation upon  request,  or  to  any  Conservation  Agent  of  the 
Department. 

Rule  19.  Conservation  Agents  to  have  acess  to  all  Wells. 
Conservation  agents  of  the  Departments  shall  have  access  to 
all  wells  at  any  and  all  times,  and  all  companies,  contractors, 
or  drillers  shall  permit  any  Conservation  Agent  of  the  Depart- 
ment of  Conservation  to  come  upon  any  lease  or  property 


276  CONSERVATION  RULES 

operated  or  controlled  by  them,  and  to  inspect  any  and  all 
wells,  etc.,  provided,  that  information  so  obtained  by  conser- 
vation agents  shall  be  considered  official  information  and 
shall  be  reported  only  to  the  Department  of  Conservation. 

Rule  20.  Notice  to  Contractors,  Drillers/  and  others  to 
observe  Rules.  All  contractors  and  drillers  carrying  on  busi- 
ness or  doing  work  in  the  oil  or  gas  field  of  the  State,  as  well 
as  lease  holders,  land  owners,  and  operators  generally,  shall 
take  notice  of  any,  and  are  hereby  directored  to  obsrve  and 
apply  the  foregoing  rules  and  regulations ;  and  all  contractors, 
drillers,  land  owners,  and  operators  will  be  held  responsible 
for  infraction  of  said  rules  and  regulations. 

Rule  21.  Three  Strings  of  Casings  to  be  used  in  Ouchita, 
Morehouse,  Richland,  and  Union  parishes.  In  drilling  any 
and  all  wells  in  the  above  mentioned  parishes  it  shall  be  un- 
lawful for  any  operator  or  operators  to  use  less  than  three 
strings  of  casings  made  up  of  10",  8",  and  6".  The  first  two 
strings  to  exclude  the  upper  waters  and  the  6"  cemented  as 
near  the  gas  or  oil  sands  as  possible.  The  casing  so  used  shall 
be  cemented  and  the  cement  brought  up  on  the  hole  outside  the 
casing  so  as  to  effectually  shut  off  all  water.  The  casing  must 
be  properly  set  in  suitable  formation  and  cemented  with  a 
liberal  quantity  of  cement.  Should  it  become  necessary  at  any 
time  to  use  different  size  casings,  other  than  the  sizes  men- 
tioned here,  a  special  permit  must  be  secured  from  the  De- 
partment of  Conservation  to  do  so.  Any  and  all  such  requests 
must  be  accompanied  by  a  full  explanation  setting  forth  the 
reasons,  etc.,  for  it.  Any  person,  firm,  association,  or  cor- 
poration who  drills  a  well  in  the  above  mentioned  parishes 
for  either  gas  or  oil  or  for  testing  or  relief  purposes  of  any 
description  shall  adhere  strictly  to  the  above  rule  in  the  prose- 
cution of  anv  and  all  such  work. 


CONSERVATION  RULES  277 

Rule  22.  Protection  of  the  Shallow  Oil  Strata  in  Claiborne 
Parish.  In  setting  6"  casing,  two  sacks  of  cement  to  sack  of 
sand  must  be  used  as  follows : 


Size 

Outside 

Sacks  of 

Sacks  of 

of 

Diameter 

Cement  to 

Sand  to 

Hole. 

of  Pipe. 

Be  Used. 

B*  Used. 

7  7-8" 

6.625 

8.52 

4.26 

8  1-2" 

6.625 

12.15 

6.25 

9  7-8" 

6.625 

23.54 

11.77 

The  above  table  is  figured  for  a  depth  of  100  feet,  and  on 
the  assumption  that  hole  is  drilled  true  to  dimensions.  De- 
viations from  the  above,  caused  by  uneveness  of  hole  or  fall- 
ing dirt,  to  be  left  to  the  descretion  of  the  driller.  Any  per- 
son, firm,  association  or  corporation  desirous  of  deepening 
any  shallow  well,  or  wells  that  are  now  in  or  hereafter  brought 
in,  shall  adhere  strictly  to  the  above  rule  in  the  prosecution 
of  any  and  all  such  work. 

Rule  23.  Only  25  per  cent  of  Capacity  of  Gas  Wells  to  be 
taken.  All  operators,  companies,  associations,  corporations, 
pipe  lines  and  transportation  companies  are  hereby  prohibited 
from  taking  more  than  25  per  cent  of  the  daily  natural  flow  of 
any  and  all  gas  wells  within  the  limits  of  the  State  of  Louisi- 
ana. 

Rule  24.  Flambeau  Lights  Unlawful.  It  shall  be  unlawful 
for  any  operator,  contractor,  driller,  company,  association, 
or  corporation  to  use  natural  gas  for  illuminating  purposes  in 
what  is  known  as  FLAMBEAU  LIGHTS,  but  nothing  herein 
shall  prohibit  the  use  of  "JUMBO"  burners  or  other  burners 
in  glass  globes  consuming  no  more  gas  than  such  "JUMBO" 
burners. 

Rule  25.     Gas  to  be  Metered.    All  gas  produced  from  na- 


278  CONSERVATION  RULES 

ture's  deposits  in  the  State  of  Louisiana  shall  be  measured 
through  property  constructed  and  accurately  adjusted  meter 
or  meters.  Each  producing  well  must  be  on  a  separate  meter 
at  all  times  and  accessible  to  any  Conservation  Agent  at  any 
time. 

Rule  26.  Burning  Gas  During  the  Day.  No  gas  shall  be 
used  or  burned  for  illuminating  purposes  between  the  hours 
of  eight  o'clock  a.  m.  and  five  o'clock  p.  m.,  unless  the  same  is 
regulated  by  meter. 

Rule  27.  Disposition  of  Waste  from  Wells.  No  inflam- 
mable product  from  any  oil  or  gas  well  shall  be  permitted  to 
run  into  any  tank,  pool,  or  stream  used  for  watering  live 
stock,  and  all  waste  of  oil  and  refuse  from  tanks  or  wells  must 
be  drained  into  proper  receptacles  at  a  safe  distance  from  the 
tanks,  wells,  or  buildings,  and  be  immediately  burned  or  trans- 
ported from  the  premises,  and  in  no  case  shall  it  be  permitted 
to  flow  over  the  land.  Salt  water  shall  not  be  allowed  to 
flow  over  the  surface  of  the  land. 

Rule  28.  Reports  from  Oil  and  Gas  Well  Operators  and 
Pipe  Line  Companies  Required.  The  Department  of  Conser- 
vation requires  monthly  report  on  forms  or  blanks  furnished 
or  designated  by  the  Department  of  Conservation  to  be  filled 
out  completely,  showing  their  completed  oil  and  gasi  wells, 
and  their  oil  and  gas  production  by  Parishes  and  the  pipe  line 
runs  by  Parishes. 

Rule  29.  It  shall  hereafter  be  unlawful  for  any  person, 
firm  corporation,  or  association  to  commence  the  erection  in 
the  State  of  Louisiana  of  any  carbon  plant  or  plants  for  the 
manufacture  of  carbon  black  from  natural  gas  or  to  make  any 
extensions  or  enlargements  of  such  carbon  plant  or  plants 
hereafter  begun,  or  enlargements  of  existing  plants  wherein 
the  erection  of  such  enlargements  have  not  been  commenced 


CONSERVATION  RULES  279 

prior  to  the  promulgation  hereof,  without  having  first  obtained 
from  the  Department  of  Conservation  of  the  State  of  Louisi- 
ana a  special  permit,  officially  signed. 

All  permit  applications  as  referred  to  here  must  be  accom- 
panied by  a  complete  and  accurate  copy  of  the  plans  and 
specifications  of  the  proposed  work,  having  the  size  of  the 
plants,  number  of  houses  to  each  unit  of  each  plant,  etc.,  to- 
gether with  the  plant  location,  name  and  post  office  address 
of  theh  company  or  owner  of  such  plant  or  plants. 

All  special  permits  so  issued  by  the  Department  of  Conser- 
vation automatically  expires  12  months  from  date  of  such 
permit  or  permits,  and  the  renewals  thereof  shall  be  left 
to  the  discretion  of  the  Department  of  Conservation  as  to 
whether  or  not  the  available  supply  of  natural  gas,  at  the  time 
such  application  or  applications  for  permits  are  received  by 
the  Department  of  Conservation,  is  sufficient  to  justify  fur- 
ther drain  on  the  natural  gas  resources  in  the  territory  or 
district  from  which  the  gas  is  taken. 

Rule  30.  Extraction  of  Gasoline  from  Natural  Gas  Used 
by  Carbon  Plant.  Before  any  carbon  plant  or  manufacturer 
can  utilize  any  natural  gas  in  Louisiana,  known  to  contain 
gasoline,  (to  make  the  extraction  therefrom  beneficial  and 
profitable)  for  making  or  manufacturing  carbon,  the  gaso- 
line therein  must  be  extracted  and  saved. 

Rule  31.  Taking  Control  of  Abandoned  and  Other  Wells. 
Any  oil  or  gas  w!ell,  or  wells,  or  any  abandoned  well,  or  wells 
in  the  State  of  Louisiana  that  is  not  properly  drilled,  capped, 
or  plugged  according  to  law,  or  any  oil  or  gas  well,  or  wells 
wasting  oil  or  gas,  or  both,  in  violation  of  the  state  laws  or 
the  rules  and  regulations  of  the  Department  of  Conservation, 
the  said  Department  of  Conservation  will  exercise  its  rights, 
privileges,  and  power  under  Act  No.  250  of  1920  in  such  cases, 


280  CONSERVATION  RULES 

and  take  charge  and  control  of  any  and  all  such  well,  or  wells 
with  the  view  and  purpose  of  correcting  any  defect  or  waste 
therefrom,  etc.,  that  might  be  in  violation  of  the  state's  laws 
or  the  rules  and  regulations  of  theh  Department  of  Conser- 
vation. This  act  gives  a  lien  and  privilege  in  favor  of  the 
Department  of  Conservation,  State  of  Louisiana,  for  all  rea- 
sonable expenses  and  costs  incurred  by  it  or  under  its  author- 
ity, in  the  closing,  capping,  plugging,  or  correcting  the  condi- 
tions of  each  and  every  such  well,  o  rwells,  and  extending  this 
lien  and  privilege  to  all  leases,  property,  equipment  and  min- 
eral products  therefrom  that  is  owned  by  any  such  company, 
firm,  individual,  corporation,  or  association. 

Rule  32.  Conservation  Agents  to  Assist  in  Enforcement  of 
Rules.  All  conservation  agents  of  the  Department  shall  as- 
sist in  the  enforcement  of  these  rules  and  shall  immediately 
notify  the  Department  of  Conservation  upon  observance  of 
any  infraction  thereof. 

Rule  33.  Additional  Rules  Will  Be  Prescribed  From  Time 
to  Time.  The  Department  of  Conservation  will  from  time  to 
time  prescribe  additional  rules,  regulations,  and  requirements 
for  the  conservation  of  crude  oil,  or  petroleum,  and  natural 
gas. 

Rule  34.  Notice  of  Intention  to  Plug.  Before  plugging 
dry  or  abandoned  well  or  wells,  advance  written  notice  (in- 
cluding a  complete  description  as  to  the  location  of  any  such 
wel  lor  wells,  and  the  date  and  time  of  day  (near  as  possi- 
ble), as  to  when  the  work  will  be  done),  shall  be  given  to  the 
Department  of  Conservation  in  order  that  a  representative 
of  the  Department  of  Conservation  might  be  present  to  wit- 
ness the  plugging  or  abandonment  of  any  such  well  or  wells 
in  the  State  of  Louisiana. 


CONSERVATION  RULES  281 

Rule  35.    Any  rule  or  regulation  or  any  part  of  any  rule, 
or  regulation  in  conflict  herewith  is  hereby  repealed. 

This  order  adopted  October  1,  1920,  and  to  be  in  full  force 
and  effect  thirty  (40)  days  thereafter. 


Regulations  as  to  Drilling  in  Ouachita  and  More- 
house  Parishes. 

Adopted  March  15th,  1920  Under  Authority  of  Act  268  of 
1918. 

In  the  drilling  of  any  and  all  wells  in  the  future  in  the  above 
mentioned  parishes,  it  shall  be  unlawful  for  any  operator  or 
operators  to  use  less  than  three  strings  of  casing  made  up  of 

10  inch,  8  inch,  and  6  inch.    The  first  two  strings  to  exclude 
the  upper  waters  and  the  6  inch  cemented  as  near  the  Gas  or 

011  sands  as  possible    The  casing  so  used  shall  be  cemented 
and  the  cement  brought  up  in  the  hole  outside  of  the  casing  so 
as  to  effectually  shut  off  all  water.    The  casing  must  be  prop- 
erly set  in  suitable  formation  and  cemented  with  a  liberal 
quantity  of  cement. 

Any  person,  firm,  association,  or  corporation  who  drills 
a  well  in  the  above  mentioned  parishes  for  either  gas  or  oil  or 
for  testing  or  relief  purposes  of  any  description  shall  adhere 
strictly  to  the  above  rule  in  the  prosecution  of  any  and  all 
such  work. 

Regulation  for  Protection  of  Shallow  Oil  Strata  in  Clai- 
borne  Parish.  Adopted  September  1st,  1919,  under  Author- 
itv  of  Act  268  of  1918. 


282  CONSERVATION  RULES 

In  setting  6  inch  casing,  two  sacks  of  cement  to  one  sack 
of  sand  must  be  used  as  follows : 


Size 

Outside 

Sacks  of 

Sacks  of 

of 

Diameter 

Cement  to 

Sand  to 

Hole. 

of  Pipe. 

Be  Used. 

Be  Used. 

7  7-8" 

6.625 

8.52 

4.26 

8  1-2" 

6.625 

12.15 

6.25 

9  7-8" 

6.625 

23.54 

11.77 

The  above  table  is  figured  for  a  depth  of  100  feet,  and  on 
the  assumption  that  hole  is  drilled  true  to  dimensions.  De- 
viations from  the  above,  caused  by  uneveness  of  hole  or  fall- 
ing dirt  should  be  left  to  the  discretion  of  the  driller. 


Regulation  Requiring  the  Use  of  Meters  in  Measuring 
Natrual  Gas.  Adopted  April  7th,  1919,  Under  Authority  of 
Section  4  of  Act  270  of  1918. 

All  gas  produced  from  the  deposits  of  the  State  shall  be 
meauserd  by  meter  to  be  installed  and  furnished  by  the  pro- 
ducer at  some  point  other  than  at  the  well,  then  the  meter 
shall  be  located  at  such  point  or  as  near  thereto  as  may  be 
convenient. 

Meters  used  for  such  purposes  must  be  properly  installed 
and  connected  up  in  such  a  manner  that  the  Department  of 
Conservation  or  its  agent  or  agents,  may  correctly  and  con- 
veniently determine  the  amount  of  gas  sold  or  produced  per 
day  or  per  month. 

All  meters  used  for  such  purposes  must  be  carefully  tested 
by  a  competent  person  and  found  to  be  correct  in  their  meas- 
urements before  they  are  connected  or  put  into  service,  and 
they  must  be  kept  accurately  adjusted  at  all  times  by  the  per- 


CONSERVATION   RULES  283 

son,  firm  or  corporation  owning  them,  and  at  their  expense, 
and  in  continuous  service. 

Authorized  agents  of  the  Department  of  Conservation  shall 
at  all  times  have  access  to  any  and  all  such  meter,  or  meters, 
and  the  Department  of  Conservation  must  be  advised  in  writ- 
ing by  the  owner  or  owners  of  such  meter  or  meters  as  to  their 
location  or  change  in  their  location,  etc.,  from  time  to  time. 

RESOLUTION  No.  36. 

In  order  to  further  conserve  the  gas  resources  and  the  pro- 
ducts taken  therefrom  in  the  State  of  Louisiana,  the  follow- 
ing has  been  adopted  and  promulgated  by  the  Department  of 
Conservation,  State  of  Louisiana: 

It  shall  be  unlawful  for  any  person,  firm,  association,  or 
corporation  to  use  a  joint  of  pipe  or  casing  in  a  well  or  wells 
in  Ouachita.  Union,  Morehouse  and  Richland  Parishes, 
Louisiana,  without  first  testing  same  by  plugging  or  capping 
both  ends  and  filling  same  with  cold  water  under  a  pressure 
of  not  less  than  1 500  pounds  to  the  square  inch,  or  to  use  any 
joint  of  pipe  or  casing  in  any  well  that  does  not  fully  stand 
such  a  test  without  injury  thereto,  and  each  joint  of  pipe  or 
casing,  so  used,  shall  be  tested  separately,  and  the  test  shall 
not  be  made  earlier  than  thirty  (30)  days  prior  to  the  use  of 
any  such  casing  in  any  well  or  wells. 

The  foregoing  is  promulgated  as  a  resolution  of  the  De- 
partment of  Conservation,  State  of  Louisiana,  under  the  au- 
thority of  Act  250  of  1920,  and  adopted  this  llth  day  of 
April,  1921,  and  it  is  required  that  the  provisions  of  this  reso- 


284  CONSERVATION  RULES 

lution  be  complied  with  within  15  days  from  date  of  its  adop- 
tion. 

DEPARTMENT  OF  CONSERVATION, 

STATE  OF  LOUISIANA, 

By  M.  L.  ALEXANDER, 

Commissioner. 
J.  K.  RENAUD,  Secretary. 

New  Orleans,  La. 
April  11,  1921. 

RESOLUTION  No.  37. 

In  order  to  further  conserve  the  gas  resources  and  the  pro- 
ducts taken  therefrom  in  the  State  of  Louisiana,  the  follow- 
ing has  been  adopted  and  promulgated  by  the  Department  of 
Conservation,  State  of  Louisiana. 

It  shall  be  unlawful  for  any  person,  firm,  association,  or 
corporation  to  use  less  than  one  hundred  (100)  sacks  of 
standard  brand  cement  in  setting  6"  casing  in  a  well  or  wells 
drilled  in  Ouachita,  Morehouse,  Richland,  and  Union  Par- 
ishes, Louisiana,  and  all  cement  used  for  such  purposes  must 
be  given  or  allowed  ten  (10)  days  in  which  to  set.  Every 
known  precaution  must  be  taken  by  the  well  owner  or  owners, 
or  contractor  or  contractors  to  see  that  all  cement,  so  used, 
reaches  the  place  for  which  it  is  intended  with  the  desired 
effect. 

The  foregoing  is  promulgated  as  a  resolution  of  the  De- 
partment of  Conservation,  State  of  Louisiana,  under  the 
authoritiy  of  Act  250  of  1920,  and  adopted  this  llth  day  of 
April,  1921,  and  it  is  required  that  the  provisions  of  this  reso- 


CONSERVATION  RULES  285 

lution  be  complied  with  within  15  days  from  date  of  its  adop- 
tion. 

DEPARTMENT  OF  CONSERVATION, 

STATE  OF  LOUISIANA, 

By  M.  L.  ALEXANDER, 

Commissioner. 
J.  K.  RENAUD,  Secretary. 

New  Orleans,  La. 
April  11,  1921. 

(RESOLUTION  No.  38  INOPERATIVE.) 
RESOLUTION  No.  39. 

Regulation  for  Standard  Pressure  Base. 

In  order  to  establish  a  standard  basis  for  the  measurement 
of  natural  gas  in  the  State  of  Louisiana,  the  following  is 
adopted  and  is  hereby  promulgated  by  the  Department  of  Con- 
servation, State  of  Louisiana. 

The  standard  of  pressure  in  all  measurement  of  natural  gas 
delivered  from  wells  in  the  State  of  Louisiana  shall  be  ten 
(10)  ounces  above  an  atmospheric  pressure  of  fourteen  and 
four-tenths  (14.4)  pounds  to  the  square  inch,  regardless  of 
the  atmospheric  pressure  at  the  point  of  measurement,  and 
the  standard  of  temperature  shall  be  sixty  (60)  degrees 
Fahrenheit,  and  all  measurements  of  gas  shall  be  reduced  by 
a  computation  to  these  standards,  no  matter  what  may  have 
been  the  pressure  and  temperature  at  which  the  gas  was  ac- 
tually measured. 

Thus  done  and  signed  on  this,  the  3rd  day  of  October,  1921, 
as  per  authority  vested  in  me  as  Commissioner  of  Conserva- 
tion, under  Act  250  of  1920,  and  it  is  required  that  the  provi- 


286  CONSERVATION  RULES 

sions  of  this  resolution  will  be  in  full  effect  in  fifteen  (15) 
days  from  the  date  of  its  adoption. 

DEPARTMENT  OF  CONSERVATION, 
STATE  OF  LOUISIANA, 

By  M.  L.  ALEXANDER, 

Commissioner. 
(STATE  SEAL.) 

J.  K.  RENAUD,  Secretary. 

RESOLUTION— MINERAL  No.  40. 

In  order  to  further  conserve  the  crude  oil  resources  of  the 
State  of  Louisiana,  the  following  has  been  adopted  and  pro- 
mulgated by  the  Department  of  Conservation,  State  of  Louisi- 
ana. 

It  shall  be  unlawful  for  any  person,  firm,  association  or  cor- 
poration to  drill  for  oil  in  the  State  of  Louisiana  without  fully 
complying  with  the  provisions  as  set  forth  in  this  resolution. 

In  order  to  further  conserve  and  protect  the  oil  horizons  in 
the  State  of  Louisiana,  the  use  of  the  casing  swab  or  other 
like  devices  used  for  lifting  oil  to  the  surface  by  means  of  wire 
cables  and  suction  tools  is  hereby  prohibited,  except: 

1.  Where  swabbing  is  necessary  in  the  bringing  in   or 
stimulating  the  well  for  short  periods  and  not  for  general  pro- 
duction. ., 

2.  Where  a  complete  extra  string  of  casing  is  inserted  into 
the  well,  to  bottom,  inside  of  and  in  addition  to  the  last  string 
of  casing  used  to  exclude  water  from  the  oil  horizons. 

The  foregoing  is  promulgated  as  a  resolution  of  the  De- 
partment of  Conservation,  State  of  Louisiana,  under  athority 
of  Act  250  of  1920,  and  adopted  this  25th  day  of  November, 


CONSERVATION  RULES  287 

1921,  and  it  is  required  that  the  provisions  of  this  resolution 
be  complied  with  within  tend  days  from  date  of  its  adoption. 

DEPARTMENT  OF  CONSERVATION, 
STATE  OF  LOUISIANA, 

By  M.  L.  ALEXANDER, 

Commissioner. 
J.  K.  RENAUD,  Secretary. 

RESOLUTION— MINERAL  No.  41. 

In  order  to  further  protect  the  gas  and  oil  sands  found  in 
the  State  of  Louisiana,  the  following  has  been  adopted  and 
promulgated  by  the  Department  of  Conservation,  State  of 
Louisiana. 

Three  Strings  of  Casing  to  be  Used  in  Webster. 

The  Webster  gas  field,  or  area,  shall  be  known  as  that  area 
in  North  Webster  and  Bossier  Parishes  which  lies  north  of 
the  south  boundary  line  of  Township  22. 

In  drilling  any  and  all  wells  in  this  area  it  shall  be  unlaw- 
ful to  use  less  than  10",  8"  and  6".  The  10"  to  be  used  as 
surface  casing  and  the  8"  to  be  set  at  least  1200'  deep.  Both 
strings  must  be  thoroughly  cemented,  according  to  the  best 
practice.  The  6"  must  be  landed  and  cemented  with  not  less 
than  100  sacks  of  neat  cement  at  a  point  as  near  the  gas  rock 
as  is  safe  and  possible.  Should  it  become  necessary  at  any 
timje  to  use  different  size  casing,  other  than  the  sizes  men- 
tioned here,  a  special  permit  must  be  secured  from  the  De- 
partment of  Conservation  to  do  so.  Any  and  all  such  requests 
must  be  accompanied  by  a  full  explanation  setting  forth  the 
reasons,  etc.,  for  it.  Any  person,  firm,  association  or  cor- 
poration who  drills  a  well  in  the  above  mentioned  area  for 
either  gas  or  -oil  or  for  testing  or  relief  purposes  of  any  de- 


288  CONSERVATION  RULES 

scription  shall  adhere  strictly  to  the  above  rule  in  the  prosecu- 
tion of  any  and  all  such  work. 

The  foregoing  is  promulgated  as  a  resolution  of  the  De- 
partment of  Conservation,  State  of  Louisiana,  under  the 
authority  of  Act  250  of  1920,  and  adopted  this  14th  day  of 
February,  1922,  and  it  is  required  that  the  provisions  of  this 
resolution  be  complied  with  within  ten  (10)  days  from  date 
of  its  adoption. 

DEPARTMENT  OF  CONSERVATION, 
STATE  OF  LOUISIANA, 

By  M.  L.  ALEXANDER, 
J.  K.  RENAUD,  Secretary. 

RESOLUTION— MINERAL  No.  42. 

Recognizing  the  necessity  of  further  conserving  the  natural 
resources  of  the  field  known  as  the  Monroe  Gas  Field,  located 
in  the  Parishes  of  Ouachita,  Morehouse,  and  Union,  State  of 
Louisiana,  therefore,  by  authority  vested  in  me  under  Act  Two 
Hundred  Fifty  (250)  of  the  Acts  of  the  General  Assembly  of 
the  State  of  Louisiana  of  1920,  and  more  particularly  Section 
Three  (3)  of  said  Act,  the  following  rule  is  hereby  promul- 
gated : 

All  persons,  operators,  companies,  partnerships,  associa- 
tions, or  corporations,  whether  owners  or  lessees  of  a  well  or 
wells  in  the  Monroe  gas  field,  and  who  may  be  producing 
therefrom  natural  gas  in  connection  with  the  manufacture  of 
carbon  black,  or  other  manufacturing  enterprises,  or  for  do- 
mestic consumption  are  hereby  prohibited  from  taking  more 
that  twenty  (20)  per  cent  of  the  daily  natural  flow  of  any 
such  well  or  wells  within  the  limits  of  said  field. 


CONSERVATION  RULES  289 

The  foregoing  supersedes  Rule  23,  Appendix,  Rules  and 
Regulations,  Act  Two  Hundred  Seventy  (270)  of  1918. 

Adopted  this  21st  day  of  February,  1922,  and  it  is  required 
that  the  provisions  of  this  rule  be  complied  with  on  or  before 
April  1,  1922. 

DEPARTMENT  OF  CONSERVATION, 
STATE  OF  LOUISIANA, 

By  M.  L.  ALEXANDER, 

Commissioner. 
Approved : 

JOHN  M.  PARKER, 

Governor. 
J.  K.  RENAUD,  Secretary. 


290  FORMS— SALE   OF   MINERAL  RIGHTS 

APPENDIX  "C" 

Forms,  etc. 

Sale  of  Mineral  Rights. 

STATE  OF  LOUISIANA, 

Parish  of 

BE  IT  KNOWN,  That  this  day  before  me... 


NOTARY  PUBLIC  in  and  for  the  Parish  of- 

Louisiana,  duly  commissioned  and  sworn,  came  and  appeared 

whose  wife's 

name  is residents  of 

the  Parish  of ,  Louisiana, 

who  declare  that do 

by  these  presents,  GRANT,  BARGAIN,  SELL,  CONVEY 
AND  DELIVER,  with  full  guarantee  of  title  and  with  com- 
plete subrogation  of  all  rights  and  actions  against  all  former 
proprietors  of  the  property  herein  conveyed  unto 


residents  of  , 

the  following  described  property, towit : 

of  all  our 

entire  interest  in  and  to  all  the  oil,  gas  and  other  minerals 
and  mineral  rights,  on,  in  and  under  the  following  described 


FORMS— SALE  OF  MINERAL  RIGHTS  291 

tracts  of  land  (together  with  full  right  of  ingress  and  egress 

at  all  times),  situated  in 

_ Parish,  Louisiana,  to-wit. 


It  is  understood  between  parties  hereto  that  this  conveyance 
is  made  subject  to  a  certain  mineral  lease  which  we  have  here- 
tofore made  to  „ 

as  recorded  in 

Book Page Conveyance  Records 

_ Parish. 

TO  HAVE  AND  TO  HOLD,  said  described  property  unto 
said  purchasers...- .heirs  and  assigns  forever. 

This  sale  is  made  for  the  consideration  of  the  sum  of 

dollars, 

cash  in  hand  paid,  the  receipt  which  is  hereby  acknowledged. 

The  certificate  of  mortage  is  hereby  waived  by  the  parties 
an  devidence  of  the  payment  of  taxes  produced. 

DONE  AND   PASSED,   at  my  office,  in  said   Parish  of 

,   Louisiana, 

in  the  presence  of and 

..„ competent  wit- 

r esses,  on  this. day  of 192 


292  FORMS— OIL  AND  GAS  LEASE 

ATTEST: 


Notary  Public. 

Oil  and  Gas  Lease. 

AGREEMENT,  Made  and  entered  into day 

of  ,  192 ., 

by  and  between 

of party  of  the 

first  part,  hereinafter  called  lessor  (whether  one  or  more), 

and ,  party  of 

the  second  part,  lessee. 

WITNESSETH,  That  the  said  lessor,  for  and  in  consider- 
ation of  Dollars, 

cash  in  hand  paid,  and  other  good  and  valuable  considera- 
tions, receipt  of  which  is  hereby  acknowledged  and  of  the  cove- 
nants and  agreements  hereinafter  contained  on  the  part  of 
the  lessee  to  be  paid,  kept  and  performed,  has  granted,  de- 
mised, leased  and  let  and  by  these  presents  does  grant,  demise, 
lease  and  let  unto  the  said  lessee,  for  the  sole  and  only  purpose 
of  mining  and  operating  for  oil  and  gas,  and  laying  pipe  lines, 
and  building  tanks,  power  stations  and  structures  thereon  to 
produce,  save  and  take  care  of  said  products,  all  that  certain 

tract  of  land  situated  in  the  Parish  of 

State  of  Louisiana,  described  as  follows,  to-wit: 


FORMS— OIL   AND   GAS   LEASE  293 


of  Section ,  Township ,  Range , 

and  containing acres,  more  or  less. 

It  is  agreed  that  this  lease  shall  remain  in  force  for  a  term 
of years  from  this  date,  and  as  long  there- 
after as  oil  or  gas,  or  either  of  them,,  is  produced  from  said 
land  by  the  lessee. 

In  consideration  of  the  premises  the  said  lessee  covenants 
and  agrees : 

1st.  To  deliver  to  the  credit  of  lessor,  free  of  cost,  in  the 
pipe  line  to  which  he  may  connect  his  wells,  the  equal  one- 
eighth  part  of  all  oil  produced  and  saved  from  said  leased 
premises. 

2nd.    To  pay  the  lessor Dollars 

each  year  in  advance,  for  the  gas  from  each  well  where  gas 
only  is  found,  while  the  same  is  being  used  off  the  premises, 
and  lessor  to  have  gas  free  of  cost  from  any  such  well  for  all 
stoves  and  all  inside  lights  in  the  principal  dwelling  house  on 
said  land  during  the  same  time  by  making  his  own  connections 
with  the  wells  at  his  own  risk  and  expense. 

3rd.  To  pay  lessor  for  gas  produced  from  any  oil  well  ana 
used  off  the  premises  or  for  the  manufacture  of  casing-head 

gas,  Dollars 

per  year,  for  the  tinte  during  which  such  gas  shall  be  used, 
said  payments  to  be  made  each  three  months  in  advance. 

If  no  well  be  commenced  on  said  land  on  or  before  the 

day  of _ ,  192 

this  lease  shall  terminate  as  to  both  parties,  unless  the  lessee 


294  FORMS— OIL  AND  GAS  LEASE 

on  or  before  that  date  shall  pay  or  tender  to  the  lessor,  or  to 

the  lessor's  credit  in  the 

Bank  at  

or  its  successors,  which  shall  continue  as  the  depository  re- 
gardless of  changes  in  the  ownership  of  said  land,  the  sum  of 

Dollars, 

which  shall  operate  as  a  rental  and  cover  the  privilege  of  de- 
ferring the  commencement  of  a  well  for months 

from  said  date.  In  like  manner  and  upon  like  payments  or 
tenders  the  commencement  of  a  well  may  be  further  deferred 
for  like  periods  of  the  same  number  of  months  successively. 
And  it  is  understood  and  agreed  that  the  consideration  first 
recited  herein,  the  down  payment,  covers  not  only  the  privi- 
leges granted  to  the  date  when  said  first  rental  is  payable  as 
aforesaid,  but  also  the  lessee's  option  of  extending  that  period 
as  aforesaid,  and  any  and  all  other  rights  conferred. 

Should  the  first  well  drilled  on  the  above  described  land  be 
a  dry  hole,  then,  and  in  that  event  if  a  second  well  is  not  com- 
menced on  said  land  within  twelve  months  from  the  expira- 
tion of  the  last  rental  period  which  rental  has  been  paid,  this 
lease  shall  terminate  as  to  both  parties,  unless  the  lessee  on 
or  before  the  expiration  of  said  twelve  months  shall  resume 
the  payment  of  rentals  in  the  same  amount  and  in  the  same 
manner  as  hereinbefore  provided.  And  it  is  agreed  that  upon 
the  resumption  of  the  payment  of  rentals  as  above  provided, 
that  the  last  preceding  paragraph  hereof,  governing  the  pay- 
ment of  rentals  and  the  effect  thereof,  shall  continue  in  force 
just  as  though  there  has  been  no  inierruption  in  the  rental 
payments. 

If  said  lessor  owns  a  less  interest  in  the  above  described  land 
than  the  entire  and  undivided  fee  simple  estate  therein,  then 
the  royalties  and  rentals  herein  provided  shall  be  paid  the  les- 


FORMS— OIL   AND   GAS   LEASE  295 

sor  only  in  the  proportion  which  his  interest  bears  to  the  whole 
and  undivided  fee. 

Lessee  shall  have  the  right  to  use,  free  of  cost,  gas,  oil  and 
water  produced  on  said  land  for  its  operations  thereon,  except 
water  from  wells  of  lessor. 

When  requested  by  lessor,  lessee  shall  bury  his  pipe  line  be- 
low plow  depth. 

No  well  shall  be  drilled  nearer  than  200  feet  to  the  house  or 
barn  now  on  said  premises,  without  the  written  consent  of  the 
lessor. 

Lessee  shall  pay  for  damages  caused  by  his  operations  to 
growing  crops  on  said  land. 

Lessee  shall  have  the  right  at  any  time  to  remove  all  ma- 
chinery and  fixtures  placed  on  said  premises,  including  the 
right  to  draw  and  remove  casing. 

If  the  estate  of  either  party  hereto  is  assigned,  (and  the 
privilege  of  assigning  in  whole  or  in  part  i  shreeby  expressly 
allowed)  the  covenants  hereof  shall  extend  to  their  heirs, 
executors,  administrators,  successors  or  assigns,  but  no 
change  in  the  ownership  of  the  land  or  assignment  of  rentals 
or  royalties  shall  be  binding  on  the  lessee  until  after  the  lessee 
has  been  furnished  with  a  written  transfer  or  assignmnt  or 
a  true  copy  thereof;  and  it  is  hereby  agreed  in  the  event  this 
leaes  shall  be  assigned  as  to  a  part  or  as  to  parts  of  the  above 
described  lands  and  the  assignees  of  such  part  of  parts  shall 
fail  or  make  default  in  the  payment  of  the  proportionate  part 
of  the  rents  due  from  him  or  them,  such  default  shall  not 
operate  to  defeat  or  affect  this  lease  in  so  far  as  it  covers  a 
part  or  parts  of  said  lands  upon  which  the  said  lessee  or  any 
assignee  thereof  shall  make  due  payment  of  said  rental. 


296  FORMS— OIL  AND  GAS  LEASE 

Lessor  hereby  warrants  and  agrees  to  defend  the  title  to  the 
lands  herein  described,  and  agrees  that  the  lessee  shall  have 
the  right  at  any  time  to  redeem  for  lessor,  by  payment,  any 
mortgage,  taxes  or  other  liens  on  the  above  described  lands, 
in  the  event  of  default  of  payment  by  lessor,  and  be  subrogated 
to  the  rights  of  the  holder  thereof. 


In  testimony  whereof  we  sign,  this  the day  of 

,  192 

Witness :  ( Seal ) 

, (Seal) 

(Seal) 

_ (Seal) 


STATE  OF  LOUISIANA, 
Parish  of.... 


BEFORE  ME, ,  a 

Notary  Public  in  and  for „ 

Parish,  Louisiana,  on  this day  of 192 , 

personally  came  and  appeared , 

who  in  the  presence  of  me,  said  authority,  and 

and 

competent  witnesses,  declares  and  acknowledges  that  he 

the  identical  person who  executed  the 

foregoing  instrument  in  writing,  that signature 

thereto own  true  and  genuine  signature ,  and 

that he executed  said  instrument  of 

own  free  will ,  and  for  the  purposes  and  considera- 
tions therein  expressed. 

Thus  done  and  passed  on  the  day  and  date  hereinabove 


FORMS— OIL  AND  GAS  LEASE  297 

written,  in  the  presence  of  the  before  named  and  undersigned 
competent   witnesses,   who   have   hereunto   subscribed   their 

names,  together  with  said  appearer ,and  me,  said  Notary, 

after  reading  the  whole. 

WITNESSES : 


STATE  OF  LOUISIANA, 
Parish  of.... 


BEFORE  ME,  the  undersigned  authority,  this  day  person- 
ally appeared  . 

j  JT  i 

to  me  personally  known  to  be  the  identical  person  whose  name 
is  subscribed  to  the  foregoing  instrument  as  an  attesting  wit- 
ness, who  being  first  duly  sworn,  on  his  oath,  says :  That  he 
subscribed  his  name  to  the  foregoing  instrument  as  a  witness, 
and  that  he  knows . 

the  Grantor  named  in  said  instrument,  to  be  the  identical  per- 
son described  therein,  and  who  executed  the  same,  and  saw 

sign  the  same  as voluntary  act  and  deed, 

and  that  he,  the  said _ 

subscribed  his  name  to  the  same  at  the  same  time  as  an  attest- 
ing witness. 

Sworn  to  and  subscribed  before  me,  this day  of 

, ;  192 


Notary  Public  in  and  for _ Parish, 

Louisiana. 


298  FORMS— ASSIGNMENT   OF  LEASE 

Assignment  of  Lease. 

STATE  OF  LOUISIANA, 

Parish  of 

KNOWN  ALL  MEN  BY  THESE  PRESENTS 
That  , 


of Parish,  Louisiana, 

hereinafter  styled  Assignor  (whether  one  or  more),  in  con- 
sideration of  the  sum  of 

dollars  paid  by 

the  receipt  of  which  is  hereby  acknowledged,  and  the  further 
consideration  hereinafter  mentioned  ha granted,  bar- 
gained, sold  and  conveyed,  and  do by  these  presents 

grant,  bargain,  sell  and  convey  unto 

hereinafter  styled  assignee successors  and  assigns,  all 

rights,  title,  and  interest  in  and  to  that  certain  oil,  gas  and 
mineral  lease  executed  by 

of Parish,  Louisiana, 

in  favor  of 

of  covering  the 

following  described  land  situated  in 

Par  i  sh ,  Lou  i  s  i  an  a , 


FORMS— ASSIGNMENT  OF  LEASE  299 

only  in  so  far  as  said  lease  covers  and  applies  to  the  following 
described  land : 


The  said  assignee  agrees  to  faithfully  carry  out  all  the  provi- 
sions of  the  original  lease  in  so  far  as  it  applies  to  that  portion 
of  tract  conveyed 


It  is  understood  between  the  parties  to  this  agreement  that 
all  conditions  between  the  parties  hereunto  shall  extend  to 
their  heirs,  executors,  administrators,  successors  and  assigns. 

IN  WITNESS  Whereof,  this  instrument  is  signed  on  this 

the day  of A.  D.  1 92 

Witnesses : 


300  FORMS— ASSIGNMENT  OF  LEASE 

STATE  OF  LOUISIANA, 

Parish  of 

BEFORE  ME, ,  a 

Notary  Public  in  and  for 

Parish,  Louisiana,  on  this. day  of 192 , 

personally  came  and  appeared 

who  in  the  presence  of  me,  said  authority,  and 

„ and 

competent  witnesses,  declares  and  acknowledges  that  he 

the  identical  person who  executed  the 

foregoing  instrument  in  writing,  that signature 

thereto own  true  and  genuine  signature , 

and  that he executed  said  instrument  of 

own  free  will ,  and  for  the  purpose  and  considerations 

therein  expressed. 

Thus  done  and  passed  on  the  day  and  date  hereinabove 
written,  in  the  presence  of  the  before  named  and  undersigned 
competent  witnesses,  who  have  hereunto  subscribed  their 

names,  together  with  said  appearer ,  and  me,  said  Notary, 

after  reading  the  whole. 

WITNESSES: 


Notary  Public. 


FORMS— ASSIGNMENT  OF  LEASE  301 

STATE  OF  LOUISIANA, 

Parish  of.™ 

BEFORE  ME,  the  undersigned  authority,  this  day  person- 
ally appeared  . „ 

to  me  personally  known  to  be  the  identical  person  whose  name 
is  subscribed  to  the  foregoing  instrument  as  an  attesting  wit- 
ness who  being  first  duly  sworn,  on  his  oath,  says :  That  he 
subscribed  his  name  to  the  foregoing  instrument  as  a  witness, 

and  that  he  knows 

the  Grantor  named  in  said  instrument,  to  be  the  identical  per- 
son described  therein,  and  who  executed  the  same,  and  saw 

sign  the  same  as voluntary  act  and 

deed,  and  that  he,  the  said 

subscribed  his  name  to  the  same  at  the  same  time  as  an  attest- 
ing witness. 

Sworn  to  and  subscribed  before  me,  this „ _.. 

day  of ,  192 „„_ 


Notary  Public  in  and  for „„ Parish, 

Louisiana. 


302  WATKINS  VS.  ATLANTA  &   SHREVEPORT  O.  &  G.  CO. 

APPENDIX  "D" 

Unreported  decision. 
UNITED  STATES  OF  AMERICA, 

STATE  OF  LOUISIANA 
SUPREME  COURT  OF  THE  STATE  OF  LOUISIANA 


New  Orleans,  Monday,  January  6,  1913. 

The   Court  was   duly  opened,   pursuant  to   adjournment. 
Present — Their  Honors: 

Joseph  A.  Breaux,  chief  justice;  Frank  A.  Monroe,  Alfred 
D.  Land,  Walter  B.  Sommerville,  associate  justices. 

Absent:  Olivier  O.  Provosty,  associatte  justice. 


His  Honor,  the  chief  justice,  pronounced  the  opinion  and 
judgment  in  the  following  case : 

Breaux,  C.  J.  January  6,  1913. 

No.  19,315. 
R.  F.  WATKINS,  et  al, 

vs. 
ATLANTA  &  SHREVEPORT  OIL  &  GAS  COMPANY. 


Appeal  from  the  First  Judicial  District  Court,  Parish  of 
Caddo. 


Plaintiffs,   alleging  that   defendant   slandered   their   title, 
brought  an  action  in  jactitation. 


WATKINS  VS.  ATLANTA  &  SHREVEPORT  O.  &  G.  CO.  303 

Defendant  claimed  ownership  of  the  property  consisting 
of  mineral  rights,  including  oil  and  gas;  also  the  right  of  in- 
gress and  egress. 

Plaintiffs  became  defendants  in  a  petitory  action,  and  de- 
fendant, plaintiff. 

The  muniment  of  title  of  plaintiff  in  the  converted  action 
is  a  deed  on  S.  A.  Watkins,  dated  May  4,  1901.  Defendant 
conveyed  in  this  deed  the  minerals,  including  oil  and  gas,  and 
the  right  to  enter  upon  the  place  for  the  purpose  of  mining 
and  marketing  the  minerals. 

Defendant  in  the  converted  action  (plaintiff  in  the  first 
suit)  pleaded  the  ten  years  prescription  (liberandi  causa) 
averring  that  nothing  further  than  the  right  to  drill  for  oil 
or  gas  and  of  passage  way,  as  well  as  room  for  mining,  was 
conveyed  to  the  Atlanta  and  Shreveport  Oil  and  Gas  Com- 
pany; that  this  was  a  real  right  in  the  property,  a  secondary 
right  or  lesser  right  never  exercised  in  any  way. 

It  is  true  that  the  suit  is  limited  to  a  claim  for  oil  and  gas ; 
there  is  no  claim  before  this  Court  to  solid  substance  or  min- 
erals in  place;  it  is  prayed  that  the  demand  of  ingress  and 
egress  be  recognized. 

Ten  years  elapsed  from  the  date  of  the  deed  before  men- 
tioned to  the  date  this  suit  was  brought,  and  no  attempt  was 
made  during  these  ten  years  to  exercise  the  rights  claimed. 
In  other  words,  there  was  a  complete  non  user. 

It  is  evident  that  oil  and  gas  not  confined  to  the  land  in 
which  they  are  produced  are  not  necessarily  part  of  the  land ; 
they  are  different  in  this  respect  from  solid  minerals. 

It  is  the  merest  truism  to  state  that  movable  property  may 
become  immovable  by  destination  and  immovable  property 


304  WATKINS  VS.  ATLANTA  &  SHREVEPORT  O.   &  G.  CO. 

may  become  movable  by  separating  it  from  the  immovable 
of  which  it  forms  part.  Until  oil  or  gas  are  brought  to  the 
surface,  they  may  in  a  sense  be  considered  immovable,  but 
not  susceptible  to  identification.  After  they  are  brought  to 
the  surface,  they  are  movable  and  become  property.  Beneath 
the  surface,  the  minerals,  gas  and  oil,  can  not  be  identified; 
the  owner  of  the  land  has  no  idea  of  what  property  he  may 
have  in  oil  nor  at  what  moment  it  may  by  transmission  pass 
to  an  adjacent  estate.  These  minerals  are  unstable  and  tran- 
sitory. The  law  requires  that  a  sale  shall  consist  of  some- 
thing susceptible  of  identification,  and  that  one  should  not 
sell  the  property  of  another.  Nemo  dat  quod  non  habet. 

An  interesting  decision,  pertinent  to  the  subject,  was  ren- 
dered in  Brown  vs.  Spilman,  158  U.  S.  665,  in  which  the 
Court  held  that  these  minerals,  because  of  their  peculiar  na- 
ture, unlike  coal  and  other  solid  substances,  have  no  situs. 

A  vendor  should  sell  his  own  and  not  the  property  of  which 
he  does  not  know  whether  or  not  he  is  the  owner. 

In  another  case  it  was  decided,  in  substance,  that  Courts 
will  take  judicial  notice  of  the  vagrant  character  of  petro- 
leum; That  it  may  be  attracted  from  a  distance  and  drain 
large  reservoirs. 

Wettengal  vs.  Gormerly,  160  Pa.  559. 

Another  decision  quite  pertinent  was  handed  down  in  the 
Federal  Supreme  Court  through  its  able  Chief  Justice,  in 
Ohio  Oil  Company  vs.  Indiana,  177  U.  S.  200.  The  Court 
said,  substantially,  that  oil  and  gas  are  not  owned  by  one  until 
they  become  property  by  being  reduced  to  actual  possession; 
and  that  they  are  subject  to  different  rules  from  property. 

In  a  number  of  State  jurisdictions,  the  Courts  of  last  ap- 
peal have  expressed  similar  views.  We  have  not  found  a 


WATKINS  VS.  ATLANTA  &  SHREVEPORT  O.  &  G.  CO.  305 

decision  directly  to  the  contrary,  nor  have  we  found  anything 
to  the  contrary  in  the  decisions  of  the  Courts  of  last  appeal 
of  France. 

The  laws  of  jurisprudence  of  that  country  relate  particu- 
larly to  floWing  waters,  but  are  made  to  apply  to  all  flowing 
minerals  as  well. 

In  referring  to  the  principles  laid  down  in  a  number  of 
decisions  we  have  cited,  and  others  we  have  read,  but  have 
not  cited,  it  is  not  our  purpose  to  go  to  the  length  that  they 
have  gone.  The  question  before  us  is  the  effect  of  non  user. 
We  treat  the  sale,  for  the  purpose  of  the  decision,  as  having 
had  some  effect  at  the  date  that  it  was  passed,  but  to  have  be- 
come lost  by  non  user. 

Les  eaux  perdent  leurs  caractises  d'eaux  priveas  losquelles 
torn  bent  dans  un  cour  d'eau  qu  illes  servent  a  alimonter.  Buc. 
Vol.  4,  p.  347. 

The  same  is  true  of  oil  and  gas. 

Until  they  are  brought  to  the  surfce,  belongs  to  no- 
body. They  transmit  themselves  and  may  be  within  the  limits 
of  the  land  of  one  person  at  one  hour  and  of  the  other  the 
next.  C.  C.  450. 

Dalloz  has  it  that : 

II  n'y  en  effect  que  les  courants  a  qua  proflu,  ens  qu'ume 
chose  commune. 

Dalloz  Repertoire  de  Legislation,  Vol.  38,  p.  208,  para.  78. 
The  French  authorities  treat  as  similar  questions  relating 
to  underground  nature  fluids  and  those  growning  out  of  prop- 
erty in  common  at  and  above  the  surface. 

They  while  in  the  earth  obey  the  law  of  gravity  only  and 


306  WATKINS  VS.  ATLANTA  &  SHREVEPORT   O.   &   G.   CO. 

like  rivers  and  seas  while  thus  obeying  they  are  not  subject 
to  the  ownership  of  any  person. 

We  next  take  up  for  decision  the  prescription  pleaded,  par- 
ticularly directed  against  the  right  of  ingress  and  egress  and 
the  occupancy  of  sufficient  land  for  mining  purposes.  We 
will  begin  by  stating  that  there  was  a  dismemberment  of  the 
property;  t  he  title  itself  remain  in  the  owner  while  the  real 
right  before  mentioned  passed  to  third  persons.  This  real 
right  was  prescriptable  under  the  Art.  3529  of  the  Civil  Code, 
which  provides  that  the  owner  may  obtain  his  release  from 
every  species  of  real  right  in  his  property  by  the  prescription 
of  ten  years.  The  dismemberment  takes  place  when  a  real 
right,  such  as  the  usurfruct  or  servitude,  is  acquired.  Every 
species  of  real  right,  according  to  the  article  Just  cited,  is 
prescribable  by  the  prescription  of  ten  years  in  case  of  non 
user.  The  right  claimed  is  unquestionably  a  species  of  real 
right.  If  one  sells  that  right  and  the  vendee  chooses  to  stay 
away  ten  years,  it  would  be  strange  if  after  that  time  he 
might  insist  that  he  would  still  have  the  right  to  bore  for  oil. 
The  idea  is  that  valuable  property  should  be  exploited  and 
utilized  within  a  reasonable  time,  and  that  it  should  not  be 
kept  in  suspense  and  neglected  without  the  danger  of  loss 
occasioned  by  the  current  of  prescription. 

We  are  brought  to  the  question  of  ingress  and  egress,  and 
necessary  space  for  mining.  They  are  certainly  lost  by  non 
user.  The  passage  of  the  land  is  in  the  nature  of  a  servitude. 
No  attempt  ever  having  been  made  to  claim  the  servitudes,  it 
is  lost.  The  effect  of  non  user  was  considered  in  St.  Louis 
Cypress  Co.  vs.  Thibodeaux,  120  La.,  and  in  other  cases  since, 
affirming  it.  This  is  a  strange  case  for  the  non  user  con- 
tinued to  a  sufficient  length  of  time  to  render  the  claim  sub- 
ject to  prescription.  There  was  no  question  of  prescription  in 
the  case  just  cited;  for  sufficient  time  had  not  elapsed.  The 


WATKINS  VS.  ATLANTA  &  SHREVEPORT  O.  &  G.  CO.  307 

right  is  one  of  servitude  as  to  which  prescriptions  arises  from 
non  usage  during  the  time  required  to  produce  its  extinction. 
Civil  Code  783. 

Another  proposition  debated  at  bar  was  that  there  was  no 
current  of  prescription  because  the  contract  contained  a  con- 
tinuing acknowledgment  of  plaintiff's  right.  We  think  it 
sufficient  answer  to  state  that  prescription  exists  as  a  rule  of 
property  and  of  public  order;  and  it  cannot  be  waived  in  ad- 
vance of  the  least  current  of  prescription. 

Lastly,  plaintiff,  in  the  converted  action,  interposed  the 
plea  of  estoppel  on  the  ground  that  defendant,  or  his  author 
in  title,  was  a  stockholder  in  the  Atlanta  and  Shreveport  Oil 
and  Gas  Company  and  has  collected  his  pro  rata  of  that 
stock.  It  remains  that  the  company  is  an  independent,  judi- 
cial person ;  its  acts  of  non  user  are  not  binding  upon  defen- 
dant as  relates  to  prescription  for  the  fact  that  he,  or  his 
author  in  title,  has  received  dividend  from  the  company. 

For  reasons  assigned,  the  judgment  is  affirmed. 


Land,  J.,  "I  dissent  and  am  authorized  to  state  that  Mr. 
Justice  Provosty  joins  in  this  dissent." 

SYLLABUS. 

( 1 )  As  the  Atlanta  and  Shreveport  Oil  and  Gas  Company 
had  only  a  real  right  which  it  failed  to  exercise  within  ten 
years,  it  lost  it  by  prescription  provided  by  Art.  3529  of  the 
Revised  Civil  Code. 

(2)  The  right  of  ingress  to  and  egress  from  the  proper- 
ty, together  with  the  right  to  use  sufficient  property  for  min- 
ing purposes,  constituted  a  real  right  which  was  also  subject 
to  the  above  mentioned  prescription. 


308  WATKINS  VS.  ATLANTA  &  SHREVEPORT  O.  &  G.  CO. 

(3)  The  fact  that  a  stockholder  in  a  corporation  shares 
in  the  dividends  of  that  corporation  does  not  thereby  estop 
him  from  pleading  prescription  liberandi  causa  against  it 
when  it  attempts  to  assert  a  real  right  against  property  owned 
by  him.  As  the  corporation  is  a  distinct  judicial  person  from 
the  stockholder  he  is  not  bound  by  its  acts. 


Breaux,  C.  J.  January  11,  1913. 

No.  19,315. 

R.  F.  WADKINS 

vs. 
ATLANTA  AND  SHREVEPORT  OIL  AND  GAS  CO. 


In  preparing  the  decree  handed  down  on  the  6th  inst,  an 
oversight  occurred. 

For  that  reason  the  decree  handed  down  on  the  said  day, 
in  this  case,  is  recalled,  avoided  and  reversed;  and  the  decree 
of  the  District  Court  also  is  recalled,  avoided  and  reversed. 

For  reasons  stated  in  the  opinion  handed  down,  it  is  or- 
dered, adjudged  and  decreed  that  there  is  judgment  in  favor 
of  R.  F.  Wadkins  and  against  the  Atlanta  and  Shreveport 
Oil  and  Gas  Co.,  perpetually  enjoining  and  restraining  the 
said  Atlanta  and  Shreveport  Oil  and  Gas  Company  from  in 
any  manner  claiming  or  asserting  and  right  or  title  to  the 
said  property.  Petitioners  fee  simple  title  thereto  and  peti- 
tioners are  quieted  and  maintained  in  their  possession  of  the 
property.  The  plea  of  prescription  is  maintained. 

It  is  ordered  that  the  action  for  damages  is  dismissed,  and 
that  defendant,  the  Atlanta  and  Shreveport  Oil  and  Gas  Com- 
pany, pay  costs  of  both  courts. 


WATKINS  VS.  ATLANTA  &  SHREVEPORT  O.  &  G.  CO.  309 

AT  CHAMBERS. 
June  22,  1914.  No.  19,315. 

R.  F.  WADKINS,  et  al. 

vs. 
ATLANTA  AND  SHREVEPORT  OIL  AND  GAS  CO. 


Per  Curiam: 

In  the  above  numbered  and  entitled  cause,  counsel  for  the 
plaintiff  and  counsel  for  the  defendant,  having  filed  a  joint 
motion  suggesting  to  this  court  that  "they  have  entered  into 
a  compromise  agreement  in  full  settlement  of  all  the  issues 
raised  in  this  case,"  and  that  they  now  desire  that  this  cause 
on  rehearing  be  stricken  from  the  trial  docket,  of  this  court, 
and  that  the  case  be  considered  as  having  been  fully  disposed 
of,  and  that  a  certified  copy  of  the  original  judgment  be  sent 
down  to  the  District  Court. 

Therefore,  in  compliance  with  the  wishes  of  counsel  for  the 
respective  parties :  It  is  ordered  by  the  court  that  the  above 
numbered  and  entitled  cause  on  rehearing  be  stricken  from 
the  trial  docket  of  the  court,  and  that  the  case  be  considered 
as  having  been  fully  disposed  of,  and  that  a  certified  copy  of 
the  original  judgment  be  sent  down  to  the  District  Court. 


TABLE  OF  CASES  CITED. 

References  are  to  Pages. 


Adeline  Sugar  Factory  Co.,  Lt.,  v.  Evangeline  Oil  Co.,  121  La.,  961 ;  101. 

Alexander  et  al.  v.  Standard  Oil  Co.  of  La.,  140  La.,  45;  131. 

Allen  v.  Atlas  Oil  Co.,  140  La.  184;  130. 

Allison  v.  Brown,  148  La.  530;  65,  68,  97. 

American  Well  &  Prospecting  Co.  v.  Lillie  Oil  Co.,  et  al.  128  La.  660;  96. 

Anse  LaButte  Oil  &  Min.  Co.  v.  Babb,  122  La.  415;  35,  38,  39,  49,  54, 

58,  62,63,66,84,91,92,  118. 
Atchafalaya  Land  Co.  v.  James,  146  La.  109;  15. 
Atkins  v.  Garnett,  270  Fed.  942;  145. 
Atlas  Oil  Co.  v.  Standard  Oil  Co.  of  La.,  142  La.  601 ;  105. 
Baird  v.  Atlas  Oil  Co.,  146  La.  1091;  28,  30,  31,  34,  39,  40,  43,  64, 

71,  120. 

Beck  v.  Natalie  Oil  Co.,  143  La.  153 ;  124. 
Berl  v.  Kehoe,  130  La.  1020;  44,  55,  56,  87,  88,  120. 
Black  Bayou  Oil  Co.  v.  Pyron  et  al.,  129  La.  117;  69,  116. 
Bradley  v.  Shreveport  Gas,  Elec.  Lt.  &  Pr.  Co.,  139  La.  1029;  124. 
Bradley  v.  Shreveport  Gas,  Elec.  Lt.  &  Pr.  Co.,  142  La.  49;  131,  138. 
Bristo  v.  Christine  Oil  &  Gas  Co.,  139  La.  321 ;  37,  58,  82. 
Brooks  v.  Peerless  Oil  Co.,  146  La.  383 ;  128. 

Brown  et  al.  v.  Producers  Oil  Co.,  134  La.  672;  38,  44,  46,  56,  72,  73,  87. 
Brown  v.  Spillman,  155  U.  S.  665 ;  9,  10,  11. 
Burkholder  v.  Consolidated  Progressive  Oil  Corp.,  149  La.  — ;  24,  27, 

28,  39,  43,  68. 
Busch-Everett  Co.  v.  Vivian  Oil  Co.,  128  La.  886;  25,  36,  37,  39,  46, 

54,  60,  61,  64,  66. 

Butler  v.  Marston  et  al.,  145  La.  41 ;  45,  116: 
Caddo  Oil  &  Mining  Co.  v.  Producers  Oil  Co.  134  La.  701;  9,  10,  11, 

41,  44,  56,  61,  72,  74,  87,  88,  116,  117. 
Calcasieu  Long  Leaf  Lbr.  Co.  v.  Reid,  146  La.  77;  132. 
Caldwell  v.  Hennen,  5  Rob.  20;  147. 
Calhoun  v.  Ardis,  144  La.  311 ;  13,  14,  36,  78,  79. 
Calhoun  v.  Christine  Oil  &  Gas  Co.,  139  La.  316;  37,  82. 


312  TABLE  OF  CASES  CITED 

Cedar  Grove  Oil  &  Gas  Co.  v.  Southwestern  Gas  &  Elec.  Co.,  141  La. 

452;  98. 

Chadwick  v.  Standard  Oil  Co.,  147  La.  668;  38,  64,  123. 
City  dT  Crowley  v.  Ellworth,  114  La.  308;  132. 
City  of  Shreveport  v.  Pierce  Oil  Co.,  141  La.  372;  135. 
Cochran  v.  Gulf  Refining  Co.  of  La.,  139  La.  1010;  20,  33,  40,  42,  46, 

57,  70,  88. 

Cochran  Oil  &  Dev.  Co.  v.  Arnaudet  et  al.,  Ill  La.  563;  24,  117. 
Cole  v.  Louisiana  Gas  Co.,  121  La.  771 ;  131,  136. 
Connett  v.  right,  149  La.  — ;  18,  35,  148. 
Conroy  v.  Pine  Belt  Lbr.  Co.,  143  La.  879 ;  98. 
Constantine  Ref.  Co.  v.  Day,  147,  La.  623 ;  107,  136. 
Constantine  Ref.  Co.  v.  Ricaud,  147  La.  634,  136. 
Continental  Supply  Co.  v.  Tucker  Rose  Oil  Co.,  146  La.  671 ;  146. 
Cook  v.  Gulf  Refining  Co.,  127  La.  592;  4,  25,  26,  27,  29,  36,  38,  68, 

76,  85,  93. 
Cook  v.  Gulf  Refinery  Co.,  135  La.  609;  10,  12,  13,  21,  26,  36,  37,  38, 

73,  74,  93,  120. 

Cooper  v.  Jennings  Refinery  Co.,  118  La.  181;  145. 
Cox  et  al.  v.  Busch-Everett  Co.  et  al.,  131  La.  817;  24. 
Craig  v.  Summers,  47  Minn.,  189,  49  N.  W.  742,  15  L.  R.  A.  236;  28. 
Creed  &  Cripple  Creek  Co.,  v.  Unita  Tunnel  Co.,  196  U.  S.  337,  9  L. 

Ed.  501 ;  16. 

Crichton  v.  Louisiana  Oil  Ref.  Co.  et  al.,  144  La.  649;  144. 
Croom  v.  Noel,  143  La.  189;  47. 
Crusel  v.  Brooks,  121  La.  243 ;  126. 
Crusel  v.  Brooks,  133  La.  477;  17,  104,  148. 
Crusel  v.  Hermitage  Planting  Co.,  114  La.  920;  102. 
Crusel  v.  Houssiere-Latreille  Oil  Co.,  122  La.  913 ;  145. 
Crusel  v.  Tierce,  118  La.  292;  100. 
Dahl  v.  Raunmeim,  132  U.  S.  269,  35  "L.  Ed.  324;  16. 
Davis  v.  Safety  First  Oil  Co.,  138  La.  89;  123. 
Davis  &  Orr  v.  Stringfellow,  138  La.  94;  124. 
DeMoss  v.  Sample,  143  La.  243;  9,  11,  13,  14,  15,  17,  36,  46,  77,  78, 

79,  82,  134. 

Denham  v.  McCormick,  139  La.  317;  37,  82. 
Denman  v.  Wilder,  148  La.  481;  32,  116. 

Department  of  Conservation  v.  Louisiana  Gas  &  Fuel  Co.,  Inc.,  144  La. 
962;  115. 


TABLE  OF  CASES  CITED  313 

DeSoto's  Heirs  v.  Standard  Oil  Co.  of  La.,  139  La.  965 ;  22,  28,  31,  120. 

Dickinson  v.  Robinson,  145  La.  438;  13. 

Dickinson  v.  Texana  Oil  &  Ref.  Co.,  144  La.  489;  126. 

Dickinson  v.  Texana  Oil  and  Ref.  Co.,  147  La.  341 ;  6,  36,  62,  71,  84. 

Dellinger  v.  Smith,  142  La.  1009;  63. 

Dreyfous  et  al.  v.  Process  Oil  &  Fuel  Co.,  142  La.  564;  146. 

Elder  v.  Ellerbe  et  al.,  135  La.  990;  10,  11,  12,  20,  22,  34. 

Elder  v.  Sun  Co.,  135  La.  943;  120,  123. 

Elston  v.  Atlas  Oil  Co.,  147  La.  1048;  37,  91. 

Escoubas  et  al.  v.  Louisiana  Petroleum  &  Coal  Oil  Co.,  22  A.  280;  1, 

36,51,67,68,70,72,86. 

Etchison  Drilling  Co.  v.  Flournoy,  Tax  Collector,  131  La.  442;  7,  132. 
Evangeline  Oil  Co.  v.  Trahan,  126  La.  243 ;  124. 
Federal  Oil  Co.  v.  Western  Oil  Co.,  112  Fed.  376;  118. 
Ferringer  v.  Crowley  Oil  &  Min.  Co.,  122  La.  441 ;  128. 
Ford  v.  Louisiana  Gas  Co.,  121  La.  771 ;  131,  136. 
Frost-Johnson  Lbr.  Co.  v.  Nabors  Oil  &  Gas  Co.,  149  La.  — ;  10,  11, 

14,  15,  37,  41,  79. 

Frost-Johnson  Lbr.  Co.  v.  Sailings,  149  La.  — ;  9,  10,  15,  35,  78,  82. 
Fuchs  et  al,  v.  Kansas  City  Southern  Ry.  Co.,  132  La.  782;  129. 
Gates  v.  Renfroe,  7  A.  769;  147. 

Goodson  v.  Vivian  Oil  Co.,  129  La.  955;  44,  46,  55,  66,  81,  85,  88. 
Gray  v.  Spring  et  al.,  129  La.  345;  40,  44,  55,  61,  72,  76,  84,  120. 
Green  v.  Standard  Oil  Co.,  146  La.  935 :  38,  42,  46,  86,  90. 
Green  et  al.  v.  United  States,  274  Fed.  145;  16,  21. 
Greening  v.  Brinkerhoff,  145  La.  760;  16. 
J.  M.  Guffey  Petroleum  Co.  v.  Murrell,  Tax  Collector,  et  al.,  127  La. 

466;  5,  6,  132. 

Guffey  Petroleum  Co.  v.  Oliver,  Tex.  Civ.  Ap.,  79  S.  W. ;  86. 
Gulf  Refining  Co.  of  La.  v.  Carroll,  145  La.  299;  18,  33,  34,  70,  116. 
Gulf  Refining  Co.  of  La.  v.  Hart  et  al.,  130  La.  51 ;  24,  34. 
Gulf  Refining  Co.  of  La.  v.  Haynes  et  al.,  138  La.  555;  18,  25,  26,  30, 

33,  35. 
Gulf  Refining  Co.  of  La.  v.  Hayne  et  al.,.148  La.  328;  10,  13,  18,  21, 

28,  31,  34,  39,  68,  70,  73,  75,  100,  118,  124. 
Gulf  Refining  Co.  of  La.  v.  Jeems  Bayou  Hunting  &  Fishing  Club,  129 

La.  1021 ;  24. 

Hahn  v.  Southwestern  Gas  Co.,  145  La.  212;  137. 
Hamman  vl  Emerson  et  al.,  135  La.  629;  148. 


314  TABLE  OF  CASES  CITED 

Hammond  Oil  &  Dev.  Co.  v.  Feitel;  115  La.  132;  95. 

Hanby  y.  Texas  Co.,  140  La.  189;  9,  10,  11,  13,  23,  27,  77. 

Hardin  v.  Higgins  Oil  &  Fuel  Co.,  147  La.  453 ;  128. 

Hart  v.  Standard  Oil  Co.,  146  La.  885 ;  42,  89,  94. 

Hayne  v.  Assessor,  143  La.  697;  135. 

Haynes  v.  Fisher  Oil  Co.  et  al.,  142  La.  890;  129. 

Heller  v.  Vailey,  28  Ind.  555,  63  N.  E.  490;  39. 

Henderson  v.  Shreveport  Gas,  Electric  Light  &  Power  Co.,   134  La. 

39;  140. 

Higgins  Oil  &  Fuel  Co.  v.  Guaranty  Oil  Co.,  145  La.  233;  9,  10,  19,  94. 
Hinton  v.  Smith,  149  La.  — ;  44,  59,  61,  66. 
Hope  v.  State  Bank,  4  A.  213 ;  147. 
Houssiere-Latreille  Oil  Co.  v.  Jennings-Heywood  Oil  Syndicate,  115 

La.  107;  29,  39,  52,  53,  60,  65,  67,  70,  73,  79,  84,  119. 
Moussiere-Laterille  Oil  Co.  v.  Jennings-Heywood  Oil   Syndicate,   116 

La.  347;  125. 

Houston  Ice  &  Brewing  Co.v  .  Murray  Oil  Co.,  149  La.  — ;  19,  22,  120. 
Hudspeth  et  al.  v.  Producers  Oil  Co.,  134  La.  1013 ;  38,  39,  56,  58,  60, 

62,  85,  92. 

Hutichinson  et  al.  v.  Atlas  Oil  Co.,  148  La.  540;  65,  86,  90,  123. 
Hutter  v.  Indian  Oil  Ref.  Co.,  134  La.  478;  145. 
Interocean  Oil  Co.  v.  Ames,  149  La.  — ;  107. 
Iddle  v.  Hamler  Boiler  &  Tank  Wks.,  138  La.  97;  130. 
Jackson  v.  Texas  Co.,  143  La.  21 ;  139. 

Jennings-Heywood  Oil  Syndicate  v.  Heywood  Oil  Co.,  117  La.  536; 
99,121.  •<    m 

Jennings-Heywood  Oil  Syndicate  v.  Home  Oil  &  Dev.  Co.,  Ltd.,  113 
La.  383;  30,  34,  75. 

Jennings-Heywood  Oil   Syndicate  v.  Houssiere-Latreille  Oil  Co.,  114 
La.  573;  124,  125. 

Jennings-Heywood  Oil  Syndicate  v.   Houssiere-Latreille  Oil  Co.,  116 
La.  1053;  120,  125. 

Jennings-Heywood  Oil  Syndicate  v.   Houssiere-Latreille  Oil  Co.,  117 
La.  960;  120,  125. 

Jennings-Heywood  Oil  Syndicate  v.   Houssiere-Latreille  Oil  Co.,   118 

La.  262;  121,  126. 
Jennings-Heywood  Oil  Syndicate  v.  Houssiere-Latreille  Oil  Co.,   119 

La.  793 ;  2,  4,  9,  35,  36,  46,  53,  55,  56,  62,  65,  67,  70,  81, 1 16,  117,  120. 


TABLE  OF  CASES  CITED  31G 

Jennings-Heywood  Oil  Syndicate  v.  Houssiere-  Latreille  Oil  Co.,  119 

La.  864;  123.      . 
Jennings-Heywood  Oil  Syndicate  v.  Houssiere-Latreille  Oil  Co.,   127 

La.  971 ;  22,  35,  84,  99,  103,  126. 
Jolley  v.  Vivian  Oil  Co.,  131  La.  937;  122,  123. 
Jones  v.  Hoffman  et  al.,  114  La.  996;  145. 
S.  M.  Jones  Co.  v.  Houma  Oil  &  Dev.  Co.,  124  La.  148;  145. 
Keene  v.  Logan,  147  La.  80;  39,  62,  63,  67,  68. 
Kenner  v.  Southwestern  Oil  Co.,  113  La.  80;  145. 
Keoughan  &  Co.  v.  Equitable  Oil  Co.,  116  La.  773;  124. 
Knight  Bros.  v.  Standard  Oil  Co.,  147  La.  272 ;  27,  29,  35,  63,  72,  92,  93. 
Langston  v.  Shaw  et  al.,  147  La.  644 ;  83. 
Latimer's  Heirs  v.  Gulf  Refining  Co.  of  La.,  146  La.  249;  24. 
Louisiana-Texas  Oil  &  Pipe  Line  Co.  v.  Atlanta  Oil  &  Gas  Co.,  124  La. 

385;  96,  99. 

Leonard  v.  Busch-Everett  Co.,  139  La.,  1099;  58,  63,  67,  82. 
Lock  et  al  v.  Russell  et  al,  75  W.  Va.  602,  845  S.  E.  948;  87. 
Lone  Star  Salt  Co.  v.  Texas  S.  L.  R.,  99  Tex.  445,  90  S.  W.  867,  L.  R. 

A.  (N.  S.),835;  118. 

Long  v.  Sun  Co.,  132  La.  601 ;  36,  44,  46,  55,  56,  69,  81,  85,  86. 
McCann  &  Harper  Drlg.  Co.  v.  Busch-Everett  Co.,  131  La.  888;  96. 
McClendon  v.  Busch-Everett  Co.,  138  La.  722;  27,  29,  41,  44,  46,  57, 

58,  62,  88. 

McClung  v.  Atlas  Oil  Co.,  148  La.  674;  18,  41,  80,  83. 
McFarland  v.  Jennings-Heywood  Oil  Syndicate,  118  La.  537;  98. 
Malone  v.  Barket,  2  Rob.  369;  147. 
Marks  v.  Lowenburg,  143  La.  196;  147. 
Marston  v.  Elliott,  Sheriff  et  al,  138  La.  574;  134. 
Martel  et  al  v.  Jennings-Heywood  Oil  Syndicate,  114  La.  351;  12,  21, 

40,  43,  44,  46,  51,  56,  71,  73,  82,  85,  116,  124. 
Martel  et  al  v.  Jennings-Heywood  Oil  Syndicate,  114  La.  903;  17,  34, 

121,  125. 

Martel  et  al  v.  Jennings-Heywood  Oil  Syndicate,  115  La.  451 ;  124. 
Martel  et  al  v.  Jennings-Heywood  Oil  Syndicate,  115  La.  615;  119. 
Martel  et  al,  v.  Jennings-Heywood  Oil  Syndicate,  115  La.  622;  119. 
Martel  et  al  v.  Jennings-Heywood  Oil  Syndicate,  118  La.  391 ;  121,  126. 
Miller  et  al  v.  Crusel,  135  La.  649;  103,  146. 
Miller  v.  Vivian  Oil  Co.,  131  La.  761 ;  24. 
Mining  Co.  v.  Kerr,  130  U.  S.  256,  32  L.  Ed.  906;  16. 


316  TABLE  OF  CASES  CITED 

Minro's  Estate  v.  Crusel,  124  La.  590;  103. 

Mohawk  Oil  Co.  v.  Layne,  147  La.  895,  254  U.  S.  651,  65  L.  Ed.  210; 

123. 

Mohawk  Oil  Co.  v.  Layne,  270  Fed.  841 ;  123. 
Mohawk  Oil  Co.  v.  Layne,  270  Fed.  851 ;  25,  41,  84,  85,  122,  123. 
Moore  v.  Gulf  Ref.  Co.,  124  La.  607;  24. 
Morris  v.  Municipal  Gas  Co.,  121  La.  1016;  139. 
Murphy  v.  Standard  Oil  Co.  of  La.,  140  La.  557;  130. 
Murray  v.  Barnhart,  117  La.  1923;  3,  33,  35,  44,  46,  51,  52,  53,  55,  56, 

58,  60,  63,  65,  67,  71,  73,  85,  91,  92,  120. 
Myers  v.  Myers  et  al,  148  La.  174;  18,  33,  123. 
Nabors  et  al  v.  Producers  Oil  Co.,  140  La.  985;  11,  29,  35,  42,  76,  88, 

94. 

Nabors  Oil  &  Gas  Co.  v.  McCormick,  145  La.  88 ;  42,  90. 
Natalie  Oil  Co.  et  al.  v.  Louisiana  Ry.  &  Nav.  Co.,  137  La.  706;  3,  9, 

10,  11,  12,  13,  20,  26,  74. 
Nervis  v.  McCormick,  139  La.  318;  37,  82. 
New  Orleans  Gas  Co.  v.  Paulding,  12  Rob.  388;  140. 
New  Orleans  Gas  Light  Co.  v.  La.  Light  etc.  Co.,  115  U.  S.  650,  6  S. 

Ct.  252,  19  L.  Ed.  516;  139. 
New  Orleans  Gas  Light  Co.  v.  New  Orleans  Drainage  Comn.,  Ill  La. 

838;  140. 

Nilson  v.  Brinkerhof f ,  146  La.  697 ;  120. 
Norris  v.  Snyder  &  McCormick,  139  La.  316;  37,  63,  82. 
Norwood  v.  Lake  Bisteneau  Oil  Co.,  145  La.  823;  128. 
Ohio  v,  Indiana,  177  U.  S.  190;  9,  10,  11. 

Ohio  Iron  Co.  v.  Auburn  Iron  Co.,  64  Minn.  404,  67  N.  W.  221 ;  28. 
Ohio  Oil  Co.  v.  Delmore,  73  N.  E.  908,  34  L.  R.  A.  62 ;  4,  35. 
Oil  City  Iron  Works  v.  Pelican  Oil  Co.,  115  La.  265;  145. 
Palmer  Co.  v.  Cotton  Queen  Oil  Co.,  141  La.  305 ;  16,  127. 
Palmer  Co.,  Inc.,  et  al  v.  Police  Jury  of  Red  River  Parish,  142  La. 

1076;  134. 

Parks  v.  Hughes,  145  La.  221 ;  74,  145. 
Parrott  v.  Kirschler,  139  La.  320;  37,  63,  82. 
Parrott  v.  McCormick,  139  La.  318;  37. 
Partee,  v.  Succession  of  Hill,  12  A.  767;  147. 
Perrin  v.  McMicken's  Heirs,  15  A.  154;  147. 
Philps  v.  Guy  Drilling  Co.,  143  La.  951 ;  128. 
Porter  v.  Rogers  Oil  &  Gas  Co.,  139  La.  1050;  129. 


TABLE  OF  CASES  CITED  317 

Prince  et  al  v.,  Standard  Oil  Co.,  147  La.  283 ;  28,  36,  64,  88. 
Producers  Oil  Co.  v.  Hanzen  et  al,  132  La.  691,  238  U.  S.  325,  59  L. 

Ed.  1330;  16,22,  119. 

Pye  v.  Southwestern  Gas  &  Elec.  Co.,  147  La.  537;  128. 
Pure  Oil  Op.  Co.  v.  Gulf  Refining  Co.  of  La.,  143  La.  284;  63,  66,  120. 
Rains  v.  Dunson,  143  La.  321 ;  123. 

Rains  v.  Dunson,  145  La.  528;  40,  43,  58,  61,  64,  82,  91,  116. 
Rains  v.  Dunson,  In  re  Bernstein,  145  La.  1011;  126,  148. 
Receivership  of  Cotton  Queen  Oil  Co.,  143  La.  2;  145. 
Reed  v.  Nelson,  133  La.  968;  132. 
Richardson  v.  Liberty  Oil  Co.,  143  La.  130,  250  U.  S.  648,  63  L.  Ed. 

1188;  146. 
Rives  et  al  v.  Gulf  Refining  Co.  of  La.,  133  La.  178;  3,  8,  9,  10,  11,  12, 

13,  16,  22,  25,  26,  30,  36,  39,  75,  120. 
Rogers  v.  S.  H.  Bolinger  Co.,  149  La.  . .  ;  116. 
Rohr  v.  New  Orleans  Gas  Light  Co.,  136  La.  546;  131,  138. 
Rowe  v.  Atlas  Oil  Co.,  147  La.  37;  39,  43,  62,  71,  92. 
Russell  et  al  v.  Producers  Oil  Co.,  138  La.  184;  19,  84. 
Russell  v.  Producers  Oil  Co.,  143  La.  217;  19,  26,  31. 
Russell  v.  Producers  Oil  Co.,  146  La.  481 ;  19,  31,  100,  104. 
Saint  v.  Martel,  122  La.  93;  83. 
Saint  v.  Martel,  123  La.  815;  123. 
Saint  v.  Martel,  126  La.  245;  123. 
Saint  v.  Martel,  127  La.  73;  17,  118. 
Saunders  v.  Busch-Everett  Co.,  138  La.  1049;  10,  12,  13,  23,  26,  27, 

45,  52,  54,  57,  58,  122. 

Silverman  v.  Caddo  Oil  &  Gas  Co.,  127  La.  928;  102. 
Slattery  v.  Arkansas  Natural  Gas  Co.,  138  La.  893;  15,  24,  120. 
Smith  v.  Shippers  Oil  Co.,  120  La.  640;  145. 
Snyder  v.  Wilder,  146  La.  811 ;  40,  82,  118. 
Southern  Cotton  Oil  Co.,  v.  New  Orleans  N.  E.  R.  Co.,  146  La.  541 ; 

107. 
Spence  et  al  v.  Lucas  et  al,  138  La.  763;  3,  12,  13,  23,  25,  26,  27,  28, 

30,  33,  40,  70,  74. 

Standard  Oil  Co.  of  La.  v.  Marlow  et  al,  141  La.  52 ;  72,  99. 
Standard  Oil  Co.  of  La.  v.  Drummers  Oil  Co.,  138  La.  94;  123. 
Standard  Oil  Co.  of  La.  v.  Police  Jury  of  Red  River  Parish,  140  La. 

42;  134.  i     •;  i  I]  ! 

Standard  Oil  Co.  v.  Webb,  149  La.     .  ;  13,  39,  40,  76. 


318  TABLE  OF  CASES  CITED 

State  v.  Capdevielle,  146  La.  93,  252  U.  S.  581 ;  15. 

State  v.  King,  133  La.  568;  111. 

State  v.  New  Orleans  Gas  Light  Co.,  108  La.  67;  140. 

State  v.  New  Orleans  Lighting  Co.,  118  La.  440;  141. 

State  v.*  New  Orleans  Lighting  Co.,  2  Or.  Ap.  269;  141. 

State  v.  Richardson  et  al,  140  La.  329;  16,  127. 

State  v.  Stiles,  137  La.  540;  134. 

State  v.  Union  Gas  &  Oil  &  Pipe  Line  Co.,  147  La.  701 ;  144. 

State  ex  rel.  Atty.  General  v.  Vivian  Gas  Oil  &  Pipe  Line  Co.,  147  La. 

701 ;  144. 
State  ex  rel.   Jennings-Heywood  Oil   Syndicate  v.   DeBallion,   Judge, 

113  La.  572;  30,  39,  40,  120,  124. 
State  ex  rel.  Jennings-Heywood   Oil   Syndicate  v.   DeBallion,   Judge, 

113  La.  619;  120,  124,  125. 
State  ex  rel.  Saint  v.  Martel,  123  La.  853;  123. 
Strobecker  v.  Robinson,  147  La.  652 ;  16. 
Strother  v.  Mangham,  138  La.  437;  10,  12,  13,  23,  27,  76. 
Succession  of  Cochran,  29  A.  232 ;  147. 
Succession  of  Franklin,  7  A.  395 ;  147. 
Thompson  et  al  v.  Busch-Everett  Co.,  133  La.  938;  24. 
Twin-Lick  Oil  Co.  v.  Marbury,  91  U.  S.  592,  23  L.  Ed.  331 ;  117. 
Union  Sulphur  Co.  v.  Reed,  249  Fed.  172;  136. 
United  Fruit  Co.  v.  Louisiana  Pet.  Co.,  115  La.  181;  103. 
VanVleet  v.  Evangeline  Oil  Co.,  127  La.  919;  145. 
VanVleet  v.  Evangeline  Oil  Co.,  129  La.  406;  144. 
VanVleet  v.  Evangeline  Oil  Co.,  133  La.  72 ;  145. 
Vestal  v.  Producers  Oil  Co.  et  al,  135  La.  984;  24. 
Vincent  Oil  Co.  v.  Gulf  Refining  Co.  of  La.,  195  Fed.  434;  31. 
Vinton  Oil  Co.  v.  Park,  115  La.  800;  145. 
Vinton  Oil  &  Sulphur  Co.  v.  Gray,  135  La.  1049;  24. 
Vinton  Oil  &  Sulphur  Co.  v.  Reed,  249  Fed.  172;  136. 
Wadkins  v.  Producers  Oil  Co.  et  al,  129  La.  848 ;  124. 
Wadkins  v.  Producers  Oil  Co.  et  al,  130  La.  308,  227  U.  S.  368,  57  L. 

Ed.  551 ;  24,  124. 
Watkins  v.  Atlanta  &  Shreveport  Oil  &  Gas  Co.,  (Not  reported — see 

Appendix)  ;  10,  78. 

Webster  v.  Harmon,  148  La.  1080 ;  145. 
Wells  et  al  v.  Files,  131  La.  736;  122. 
Wells  et  al,  v.  Files,  133  La.  219;  122. 


TABLE  OF  CASES  CITED  319 

Wemple  v.  Eastham,  144  La.  957;  15. 

Wemple  v.  Pasadeba  Pet.  Co.,  147  La.  532 ;  28,  30. 

Wemple  v.  Producers  Oil  Co.  145  La.  1031 ;  65,  87. 

Westmoreland  Gas  Co.  v.  DeWitt,  130  Pa.  235,  18  Atl.  724,  5.  L.  R.  A. 

731 ;  10. 

Wiggins  v.  Standard  Oil  Co.  of  La.,  141  La.  532;  130. 
Wilder  v.  Norman,  147  La.  413;  43,  44,  58,  62,  68,  71. 
Wilkins  et  al  v.  Penn.-La.  Oil  &  Gas  Co.,  Inc.,  149  La.  . .  ;  145. 
Williams  v.  McCormick,  139  La.  319;  37,  63. 
Wilson  v.  Pierson,  143  La.  287;  11,  75,  80,  120. 
Winterb'aler  v.  Hoffman,  119  La.  125;  145. 

Wolff  v.  Shreveport  Elec.  Light  &  Pr.  Co.,  138  La.  743;  131,  137. 
Woodruff  v.  Producers  Oil  Co.,  142  La.  368;  128. 
Zagst  Co.  v.  Southern  Surety  Co.,  148  La.  328;  128. 


INDEX. 

REFERENCES  ARE  TO  PAGES. 


A. 

ABANDONED  — 

well  to  be  plugged,  272. 

well  to  be  controlled  by  Dept.  of  Conservation,  279. 

ABANDONMENT  — 

right  of,  47. 

in  general,  69,  71. 

of  lease,  69,  71. 

of  joint  lease,  71. 

question  of  fact  and  intention,  72. 

removal  of  machinery  after,  72. 

as  termination  of  lease,  69. 

of  drilling  contract,  95. 

as  reason  for  receiyership,  145. 

ABSURD  CONCLUSIONS  — 

contracts  not  construed  so  as  to  lead  to,  36. 

ABUSE  — 

of  rig,  damages  for,  99. 

ACCEPTANCE  — 

of  benefits  under  lease,  28,  60. 

of  gas  rentals,  64,  89. 

of  rentals  and  payments,  62. 

refusal  of,  63,  66. 

of  development  under  lease,  60,  61.' 

of  sufficiency  of  development,  91,  92. 

of  well  under  contract,  96. 

ACCEPTANCE  OF  SUCCESSION  — 
affect  on  previous  lease,  33,  40,  41. 


322  INDEX 

ACCESS  — 

to  wells  by  conservation  agents,  275. 

ACCESSORIES  TO  WELL  — 
machinery,  etc.,  99. 

ACCIDENTAL  — 

stipulations  of  law  in  re  oil  and  gas,  3. 

ACCOUNTING  — 

by  co-owners  of  minerals,  71. 
for  sequestered  oil,  126. 
by  partners,  148. 

ACCRETIONS  — 

on  banks  of  waters,  etc.,  16. 

ACKNOWLEDGMENTS  — 
of  leases,  etc.,  296. 

ACQUISITION  — 
of  oil  and  gas,  10. 
of  minerals  and  mineral  rights,  23. 
of,  lease,  26. 

ACQUIESCENCE  — 

in  expenditures,  etc.,  60,  61. 

in  sufficiency  of  development,  91,  92. 

in  drilling  contract,  95,  96. 

in  judgment,  122. 

ACTIONS—  (see  PROCEDURE). 

ADEQUATE  CONSIDERATION  — 
for  lease,  45. 

ADJOINING  LANDOWNERS  — 
rights  of  10. 
in  general,  11. 

must  abstain  from  damaging  neighbor,  19. 
not  obliged  to  save  neighbor  from  loss,  19. 
cannot  complain  of  lawful  acts  of  neighbor,  18. 
royalty  due  to  rightful  owner  of  land,  31. 
use  of  pumps,  94. 


INDEX  323 

ADVERSE  CLAIMS  - 
to  lands,  24,  116. 

ADVICE  OF  COUNSEL - 

possession  on,  21. 

as  to  interpretation  of  contract,  37. 

AGENTS - 

listing  lease  with  for  sale,  13. 

of  Department  of  Conservation,  207,  275,  280. 

AMBIGUOUS  - 

clauses  in  lease,  4. 

clauses  construed  against  vendor,  37. 

AMOUNT - 

of  consideration,  45. 
of  production,  92. 

ANALYSIS  - 

of  conservation  laws,  107. 
of  tax  laws,  132. 
of  corporation  laws,  141. 
of  blue  sky  law,  146. 

ANCHORAGE - 

well  must  have  proper,  273. 

ANCILLARY  SEQUESTRATION  - 
in  general,  124. 

ANIMALS  FARAE  NATURAE  — 
oil  compared  to,  9. 

ANTIQUATED  PROVISIONS  — 
of  law,  3. 

APPEAL—  (see  PROCEDURE). 

from  Railway  Commission  Rules,  106,  statute,  228. 

to  courts  from  conservation  rules,  111. 

dismissal  of,  122. 

sequestration  after,  124. 

review  of  matters  involving  discretion  of  lower  court,  121. 


324  INDEX 

ARREARS  — 

cutting  off  gas  for,  140. 

ARTIFICIAL  GAS  - 

license  tax  on  manufacturers  of,  141. 

ASSESSMENT  - 

for  taxation,  5,  134. 

ASSIGNMENT - 

by  husband  of  wife's  leases,  32. 

in  general,  39. 

of  lease,  39. 

rights  and  liabilities  of  transferree,  39. 

descriptions  in,  40,  41. 

form  of,  298. 

ASSUMPTION  - 

of  husband's  obligations  by  wife,  32. 

ATTORNEYS - 

acquiring  interest  in  land,  18. 

advice  of,  21,  37. 

acquiring  interest  in  mineral  rights,  80. 

fees  for  cancellation  of  lease  under  statute,  149. 

fees  under  gasoline  tax  law,  164. 

B. 

BAILEE  - 
of  oil,  104. 

BAD  FAITH—  (see  FRAUD,  Etc.) 
of  possessor,  21. 

where  acting  on  advice  of  counsel,  37. 
in  selling  property  to  corporation,  145. 

BAD  TITLE—  (see  TITLE). 
to  lease,  24. 
warranty,  75. 

BANK- 

deposit  of  payments  in,  63. 

notification  to  of  refusal  to  accept  deposit,  66. 


INDEX  325 


BANKS  OF  STREAMS  — 
in  general,  16. 

BASIS - 

of  pressure,  285. 

BEDS  OF  LAKES,  etc.— 
in  general,  15. 

BEGINNING  OPERATIONS  — 
in  general,  92. 

BENEFITS  — 

acceptance  of,  28,  60. 

BLANKS - 

leaving  in  form  lease,  27. 

BLOWING  OUT  PIPE  - 
injury  from,  138. 

BLUE  SKY  LAW- 
resume  of,  146. 

BOARD  OF  HEALTH  - 
inspection  of  oil  by,  131. 

BONDS - 

injunction,  74. 

for  running  oil,  104. 

to  release  sequestration,  125. 

corporate,  given  in  payment  of  property,  145. 

BONUSES— (see  PAYMENTS). 

illegal  possessor  owes  to  owner,  22. 
in  general,  62. 

BORING  - 

by  owner,  12. 

BOSSIER  PARISH  — 
field,  3. 
drilling  in,  287. 

BOTTOMS  OF  LAKES,  etc.— 
in  general,  15. 


326  INDEX 

BOUNDARIES  — 
between  leases,  19. 
action  of,  19. 

BREACH  OF  CONTRACT  — 
to  deliver  oil,  102. 

to  furnish  transportation  by  steamer,  107. 
damages  and  specific  performance,  118. 

BREAKS  IN  LINES  - 
notification  of,  275. 

BULL -BAYOU — 
field,  12. 

BURDEN  OF  PROOF  - 

on  broker  claiming  commission,  13. 
of  payment,  62. 
on  one  claiming  forfeiture,  71. 
of  fraud,  116,  123. 

BUSINESS  TRUSTS  — 
in  general,  147. 

BY-PRODUCTS  — 

other  substances  than  oil,  1,  86. 

C. 

CADDO  — 
fields,  2. 

CADDO  LEVEE  BOARD  LANDS  - 
lease  of  32;  statute,  245. 

CANCELLATION—  (see  TERMINATION). 
in  general,  69. 

lessor  and  lessee  necessary  parties  to  suit  for,  28,  31,  120. 
of  lease  from  records,  71;  statute,  149. 

CAPITAL  - 

required  for  development,  6. 

CAPITAL  STOCK  — 
of  corporations,  141. 
paying  dividends  out  of,  144. 
replacement  of  144. 


INDEX  327 

CARBON  BLACK - 

statute  giving  power  over  to  Dept.  of  Conservation,  214. 

plants,  278. 

use  of  gas  for  in  Ouachita,  Morehouse,  Union,  288. 

CARS—  (see  TANK  CARS). 

conditional  sale  of  tank  cars,  106. 

CASING— (see  PIPE). 
line  on,  98. 
removal  of,  99. 
mortgage  of,  99. 
injury  from,  130. 

kind  to  be  used  in  Ouachita,  Morehouse,  Richland,  and  Union  Par- 
ishes, 276,  283,  284. 
to  be  used  in  drilling,  282. 
to  be  used  in  Webster  and  Bossier,  287. 

CASINGHEAD  GASOLINE  - 
payment  for,  87. 

CASUAL  STIPULATIONS  OF  LAW- 
relative  to  minerals,  3. 

CESSATION  - 

time  between,  and  resumption  of  operations,  93. 

CHARACTER  OF  OIL  AND  GAS  - 
in  general,  9. 

CHARGES - 

for  storage  and  piping,  103,  104. 

CHECKS - 

as  payment,  65. 

CHATTEL  INTEREST  — 
as  name  for  lease,  36. 

CHATTEL  MORTGAGE  - 
of  machinery,  pipe,  ets.,  99. 

CHATTEL  REAL  - 

as  name  for  lease,  36. 


328  INDEX 

CITIES —  (see  MUNICIPALITY). 

CITY  ORDINANCES—  (see  POLICE  POWER). 
against  storage  of  oil,  132. 
fixing  gas  rates,  140. 

CIVilL  CODE,  PROVISIONS  OF- 
as  applied  to  oil  and  gas,  3. 
friuts,  12. 

ownership  of  soil,  13. 
possessors,  21. 
sales  and  leases,  26. 
potestative  condition,  47. 
litigious  rights,  83. 

CLAIBORNE  — 

protection  of  shallow  strata  in,  277,  281. 

CLAIMS - 

to  mineral  lands,  24,  116. 

COAL- 

as  mineral  in  place,  14. 

oils,  inspection  of  by  Board  of  Health,  131. 

CODE  NAPOLEON  — 

provisions  of  relative  to  potestative  condition,  48. 

CODE  OF  PRACTICE  — 

as  applied  to  oil  and  gas,  3. 

provisions  of  relative  to  dismissing  lessee  from  action,  22. 

COLLUSION  —  (see  FRAUD). 
in  general,  116. 

COMMENCEMENT  OF  OPERATIONS  - 
in  general,  92. 

COMMINGLING  OIL  OF  DIFFERENT  OWNERS  — 
effect  of,  104. 

COMMISSION  - 

action  for  by  agent,  13. 
for  sale  of  oil,  103. 


INDEX  329 

COMMISSION,  CONSERVATION  (see  CONSERVATION). 
generally,  107. 

COMMON  CARRIERS  - 
pipe  lines  as,  105. 
statutes,  223. 

COMMON  PURCHASERS -- 
legislation  relative  to,  23. 
statute,  gas,  184. 
statute,  oil,  208. 

COMMON  STOCK  - 
stored  oil  as,  103. 

COMMUNITY  LEASE - 

in  general,  43. 

as  containing  potestative  condition,  58. 

COMMUNITY  PROPERTY  - 
lease  of,  32. 

COMPENSATION,  WORKMEN S'- 
law,  127. 

COMPLAINT  OF  LESSOR  - 

where  contract  complied  with,  27. 

CONDEMNATION—  (see  EMINENT  DOMAIN). 

CONDITIONS  - 

implied  in  lease,  29,  87. 
potestative,  47,  60. 

CONDITIONAL  SALE- 
of  tank  cars,  107. 

CONSENT - 

of  co-owner  to  exploration,  18. 
to  extension  of  lease,  38. 


330  INDEX 

CONSERVATION — (see  RULES  OF  DEPT.  OF  CONSERVATION), 
under  police  power,  23. 
in  general,  107. 
resume  of  statutes,  107. 
closing  wild  wells,  170,  177. 
waste,  170,  173,  176,  180,  181. 
powers  and  duties  of  Department  of,  188,  202,  214. 
control  of  gas  production,  180. 

name  of  Commission  changed  to  "Department,"  204. 
salary  of  Commissioner,  206. 
agents,  207. 
purchasers  of  oil,  208. 

powers  during  periods  of  over-production,  209. 
powers  relative  to  carbon  industry,  214. 

CONSERVATION  COMMISSION  —  (see  CONSERVATION). 
generally,  107. 

CONSIDERATION  - 
in  general,  43. 
one  dollar  as,  44. 
serious  required,  44,  45,  46. 

recital  that  consideration  is  deemed  sufficient,  44. 
want  of,  44. 
twenty  dollars  as,  44. 
royalty  as,  44. 

promise  of  development  as,  44,  46. 
assumption  on  as  to  seriouseness  of,  44. 
inadequate,  44. 
substantial,  44,  46. 
discrepancy  in,  45. 
for  wildcat  lands,  45. 
amount  of,  45. 
for  reservation,  46. 
potestative  condition,  59. 
for  extension  of  lease,  67. 
development  as,  85. 

CONSTITUTION  — 
articles  of,  269. 


INDEX  331 


CONSTRUCTION  AND  INTERPRETATION  — 

in  general,  35. 

ambiguous  clauses  construed  against  vendor,  37. 

intention  of  parties,  35. 

intention,  how  inferred,  35. 

language  as  showing  intention,  35. 

terms  employed  in  instrument,  35. 

intention  must  be  lawful,  35. 

instrument  construed  as  a  whole,  36. 

word  used  in  describing  contract,  36. 

unambiguous  language,  36. 

against  lessee,  36. 

of  parties  to  contract,  36. 

against  party  writing  contract,  36. 

by  counsel,  37. 

leading  to  absurd  conclusions,  37. 

courts  will  not  re-write  contracts,  37. 

forfeiture  not  favored,  70. 

CONTAMINATION  - 

of  waters,  17,  97;  statutes  266,  267. 
conservation  rules,  274. 

CONTEMPLATION  OF  LAWMAKERS  - 
in  re  oil  and  gas,  3. 

CONTRACTS  - 

treated  as  leases,  26. 

form  of  lease,  27. 

construction  and  interpretation,  35. 

unilateral,  59. 

termination,  70. 

drilling,  95. 

breach  of,  for  transportation,  107. 

lesion,  fraud,  error  in,  116. 

drilling,  statute  in  re.  250. 

CONVERSION  - 
in  general,  99. 
damages  for,  100. 


332  INDEX 

CONVEYANCE- 

as  name  for  lease,  36. 

CO-OWNERS  - 

in  general,  17,  33. 

accounting  by,  17. 

dismissal  of  suit  after  conveying  interest,  18. 

no  partition  of  kind  of  oil  Jands,  18. 

right  to  partition,  18. 

injunction  against  lessee,  18. 

one  acting  for  all,  18. 

of  minerals  and  surface  not  tenants  in  common,  17. 

exploration  by  one,  18. 

lease  of  lands  of,  33. 

possession  of  undivided  interests,  33. 

lease  void  as  to,  33. 

lease  of  undivided  interest,  33. 

may  join  in  lease,  33. 

need  not  own  whole  to  lease,  33. 

heirs  taking  possession,  33. 

suit  to  annul  part  of  lease,  34. 

eviction  from  part  of  lease,  34. 

abandonment  of  lease  by,  73. 

sequestration  by,  124. 

CORPORATIONS - 
resume  of  law,  141. 
dividends  out  of  capital  stock,  144. 
transactions  with  officers,  145., 
value  of  property  given  for  bonds,  145. 
receivership,  145. 

COST- 

of  drilling  well,  when  deducted  by  wrongful  possessor,  21, 

COSTS - 

of  sequestration,  125. 

COUNSEL—  (see  ATTORNEYS). 


INDEX  333 


COURTS —  (see  PROCEDURE,  APPEAL). 
interpretations  by,  4. 
as  making  law,  4. 
will  protect  equitable  owner,  16. 
will  not  re-write  contracts,  36. 
when  will  order  specific  performance,  117. 
jurisdiction  of  in  sequestration  proceedings,  125. 

COVENANTS—  (see  CONDITIONS,  etc.) 

CRIMES  AND  OFFENSES  — 
Under — 

contamination  of  waters,  17,  97;  statutes,  266,  267. 

gas  tax  law,  165. 

severance  tax  law,  157,  158. 

closing  wild  wells,  171. 

waste,  175,  180. 

common  purchasers  of  gas,  237. 

conservation  statutes,  202. 

over-production  statute,  212. 

rules  of  Department  of  Conservation,  219. 

pipe  line  law,  237. 

damage  to  gas  plants,  261. 

diverting  gas,  262,  263. 

CROSS  LAKE  LANDS - 

reservation  of  minerals,  17,  261. 

CROSSING  ROADS  AND  STREAMS  - 
by  pipe  lines,  105. 

CROSSING  LEVEES  — 
by  pipe  lines,  105. 

CUPIDITY  - 

of  lessors  and  lessees,  4. 

CUSTOMS  - 
leasing,  25. 

of  field,  as  to  development,  90. 
of  drilling  offsets,  94. 
charges  for  storage  and  piping,  104. 


334  INDEX 

CUTTING  OFF  GAS  - 
for  arrears,  140. 

DAMAGES — (see  PERSONAL  INJURIES). 
due  by  unlawful  possessor,  21. 
due  to  lessee  for  slander  of  title,  31. 
construction  of  lease  not  against  lessee  in  suit  for,  36. 
rentals  construed  as  liquidated,  63. 
in  general,  73. 
for  failure  to  drill,  73. 
for  usurpation  of  rights  of  lessee,  73. 
must  be  certain,  73. 
for  insufficient  development,  74. 
under  drilling  contract,  95. 
from  waste  oil,  97. 
for  abuse  of  rig,  99. 
for  conversion  of  oil,  99. 
for  failure  to  deliver  oil,  100,  103. 
for  failure  to  transport  oil  by  steamer,  107. 
in  relation  to  specific  performance,  118. 
for  personal  injuries,  127,  129. 
for  failure  to  cancel  lease,  150. 
to  gas  plants,  261. 

DAMNUM  ABSQUE  INJURIA- 
doctrine  as  to  waste  oil,  98. 

DATION  EN  PAIEMENT  — 
giving  leases  under,  32. 

DEDUCTION  OF  COST  OF  DRILLING  - 
by  illegal  possessor,  21. 

DEED- 

as  name  for  lease,  26. 

DEFAULT  - 

in  general,  66,  68. 

party  in,  cannot  claim,  67. 

when  necessary  and  unnecessary,  68. 

when  lessor  puts  himself  in,  68. 


INDEX  335 

DEFINITION  OF  "WASTE"  - 
under  statute,  181. 

DELAY - 

return  of  payments  cannot  be  asked  after,  65. 
as  relieved  by  equity,  66. 
vis  major,  as  excuse  for,  81. 

DELIVERY  OF  OIL  — 
failure  to,  101,  103. 

DEMAND—  (see  DEFAULT). 

when  payments  are  due  on,  67. 

DENIAL  OF  TITLE  - 
of  lessor,  by  lessee,  30. 

DEPARTMENT  OF  CONSERVATION  —  (see  CONSERVATION). 
generally,  107. 

DEPARTMENT  OF  MINING  AND  MINERALS  - 
reference  to,  109. 

DEPOSIT - 

of  payments  in  bank,  63. 
notification  of  refusal  to  accept,  66. 

DERRICK  - 

erection  of  as  compliance  with  lease,  91,  92. 

lien  on,  98. 

defective,  injury  from,  128. 

DESCRIPTION  - 

in  assignments,  leases,  etc.,  40,  41. 

DE  SOTO  — 
fields,  2. 

DEVELOPMENT  — 
requisites  of,  6,  84. 
pumps,  etc.,  18,  94. 
use  of  mechanical  means,  19. 
by  usufructuary,  20. 
by  possessors  and  trespassers,  21. 


336  INDEX 

DE  VELOPMEN  T—  ( Continued ) 

cost  of  by  illegal  possessor,  21. 

cost  of  producing,  transporting,  selling,  21. 

subject  to  police  power,  23. 

risk  of,  25. 

drilling  well  before  lease  signed,  26. 

starting  operations  as  curing  defects,  27. 

compliance  by  lessee  as  curing  complaints,  27. 

divisibility  of  drilling  operations,  41. 

promise  of  as  consideration,  44. 

as  consideration,  46,  85. 

"sole  and  only"  clause,  54. 

cures  potestative  condition,  60. 

tender  of  performance,  65. 

vis  major  as  excuse  for  delay,  81. 

storage  necessary,  84. 

right  to  use  surface,  84. 

in  general,  84. 

time  for,  85. 

rights  in  oil  as  giving  right  to  gas,  85. 

enures  to  right  of  lessee,  85. 

unexpected  substances,  86. 

implied  obligation  to  drill,  87. 

diligence,  sufficiency,  87. 

erection  of  derrick  as  compliance,  91. 

what  constitutes  commencement,  92. 

amount  of  production,  92. 

cessation  and  resumption,  93. 

offsets,  94. 

pumps,  etc.,  94. 

drilling  contracts,  95. 

waste  oil,  97. 

storage,  piping,  transportation,  103. 

conservation,  107. 

fraud  in,  116. 

cessation  as  cause  for  receivership,  145. 

sequestration,  118. 

inspection  of  oil,  explosive  oils,  etc.,  131. 


INDEX  337 

DIFFICULTY  — 

of  interpreting  leases,  4. 

DILIGENCE - 
in  general,  87. 
"due  diligence,"  94. 

DISCOVERY  — 

value  of  land  after,  24,  116. 
claims  after,  24,  116. 

DISCREPANCY  — 
in  consideration,  45. 

DISCRETION  OF  COURT  — 
in  re  injunction,  121. 
in  re  sequestration,  125. 

DISMEMBERMENT  OF  TITLE  — 
to  land  and  minerals,  13. 

DISMISSAL  - 

of  suit  after  conveying  interest,  18. 
of  appeal,  122. 

DISSOLUTION  OF  LEASE— (see  TERMINATION). 
generally,  69. 

claim  by  lessor  on  ground  that  he  does  not  own  land,  28. 
after  consideration  received  and  kept,  28. 

DISTANCE  — 

drawing  oil  from,  9. 
of  offsets,  custom,  9. 

DIVERTING  GAS  — 

misdemeanor,  262,  263. 

DIVIDENDS  — 

payment  out  of  capital  stock,  144. 

DIVISIBILITY  — 

of  obligation  to  drill,  41. 

of  lease  in  general,  41. 

of  gas  from  oil  under  lease,  42. 


838  INDEX 

DOCTRINES  APPLICABLE  TO  OIL  AND  GAS  — 
in  general.  12. 

DOLLAR  AS  CONSIDERATION  - 
not  serious,  44. 

DRAINAGE  - 

of  oil,  etc.,  into  waters,  17,  97. 
of  oil  by  adjoining  land  owners,  18. 
of  oil  by  use  of  pumps,  etc.,  94. 
of  oil,  claim  for  damages  for,  74. 

DRAWING  OIL- 
from  distance,  9. 

DRILLER—  (see  DRILLING). 

DRILLING —  (see  RULES  OF  DEPARTMENT  OF  CONSERVATION). 
by  surface  owner,  11,  12. 
usurpation  of  rights  of,  13. 
cost  of  by  illegal  possessor,  21. 
before  signing  lease,  26. 
obligation  indivisible,  41. 
injunction  against,  74. 
rights  of  persons,  84. 
"due  diligence,"  94. 
by  hand,  danger  of,  129. 
records  to  be  kept,  272,  275. 

DRILLING  CONTRACT  — 
in  general,  95 ;  statute,  262. 
abandonment  of,  95. 
negligence  under,  95. 
claim  for  damages  under,  95. 
lien  under,  95. 
"to  satisfaction"  clause,  96. 
reducing  size  of  hole,  97. 

DRY  WELL  — 

to  be  plugged,  272. 

"DUE  DILIGENCE"  — 
clause  in  lease,  94. 


INDEX  339 

E. 

EARLY  CASES  — 
oil  and  gas,  1. 

EARNEST - 

payment  of,  82. 

EARTHERN  TANKS  — 
storage  In,  104. 

EASEMENTS — (see  SERVITUDES,  RIGHT-OF-WAY,  PIPE  LINES,  etc.) 

EGRESS  AND  INGRESS  — 
right  of  lessee,  29. 

ELEMENTS  OF  OWNERSHIP  — 
dismemberment  of,  14. 

EMERGENCY  — 

of  river  banks  from  water,  16. 

EMINENT  DOMAIN  - 

right  of  by  pipe  lines,  105. 

EMPLOYERS'  LIABILITY  ACT  — 
reference  to,  8,  127. 

ENTRY - 

of  Government  lands,  16,  22. 

EQUIPMENT  — 
in  general,  99. 

deducting  cost  of  by  unlawful  possessor,  21. 
proper,  required  for  gas  wells,  273. 

EQUITABLE  — 
ownership,  22. 
sequestration,  124. 

EQUITY - 

as  relieving  delay,  66. 

ERECTION  OF  DERRICK  - 

as  compliance  with  lease,  91,  92. 


340  INDEX 

ERROR - 

in  lease  contract,  36,  45. 
in  general,  116. 
must  be  proved,  116. 

ESCAPING  OIL  — 
damage  from,  98. 

ESSENCE  OF  CONTRACT - 
time  as,  85. 

ESTOPPEL - 

after  receiving  benefits  under  lease,  60. 
permitting  expenditures,  84. 
as  to  location  of  well,  84. 
accepting  gas  rentals,  89. 

EVICTION—  (see  WARRANTY). 
from  interest  in  lease,  34. 

EVIDENCE—  (see  PROOF). 

written,  required  showing  right  to  explore,  11. 
of  ownership  of  minerals,  23. 
presumption  as  to  receipt  of  letter,  63. 

EXCEPTIONS— (see  RESERVATIONS). 
in  general,  13,  76. 

EXCLUSIVE  RIGHT  OF  OWNER  — 
to  drill,  12. 

EXEMPLARY  DAMAGES - 
against  unlawful  possessor,  21. 

EXEMPTIONS  FROM  TAXATION  — 
in  general,  6,  7,  136. 
constitutional  provisions,  269. 

EXHAUSTION  — 

of  surroudning  territory  by  well,  9. 

EXPECT  ANCY- 
title  in,  16. 


INDEX  341 


EXPENDITURES  - 

by  possessors  and  trespassers,  21. 
acquiescence  in,  60,  61. 

EXPENSE  OF  PRODUCTION  — 
consideration  of,  12. 
by  possessors  and  trespassers,  21. 

EXPERIENCE  - 

required  for  development,  6,  84. 

EXPLOSION  - 

in  tank  car,  129. 
from  oil,  132. 

EXPLOSIVE  OILS- 
storage  of,  132. 

EXPLOITATION  — (see  DEVELOPMENT). 
as  fight  of  ownership,  10. 
by  co-owners,  18. 
in  general,  84. 

EXPROPRIATION  — 

right  of  by  pipe  lines,  224. 

EXTENSION  — 

by  usufructuary,  20,  67. 

by  consent,  38. 

in  general,  67. 

by  former  owner,  67. 

by  implication,  67. 

consideration  for,  67. 

must  have  title  to  grant,  67. 

EXTRA-JUDICIAL  PARTITION  - 
in  general,  70. 

EXTRACTING  - 

oil,  cost  of  by  illegal  possessor,  21. 
gasoline  from  gas,  279. 


342  INDEX 

F. 

FACT- 

abandonment  is  question  of,  72. 

FAILURE - 

to  comply  with  contract,  70. 

to  drill,  damages,  73. 

to  deliver  oil,  101,  103. 

to  transport  oil  by  steamer,  107. 

to  cancel  lease,  150. 

FARAE  NATURAE— 

animals,  doctrine  of,  9,  10. 

FARM  LEASE - 

compared  to  oil  lease,  26. 

FEDERAL  LEASING  ACT  — 
reference  to,  32. 

FEE  — 

sale  of  as  including  minerals,  24. 
sale  of  terminates  rights  of  lessor,  28. 

FEES  —  (see  ATTORNEYS). 

FENCES  - 

duty  of  lessor  and  lessee  as  to,  28. 

FINDING  UNEXPECTED  SUBSTANCES 
in  general,  1,  86. 

FIRE  — 

loss  of  stored  oil  by,  103. 
notification  of,  275. 

FIRST  OIL  AND  GAS  CASE  — 
reference  to,  1. 

FIXED  STATUS  OF  MINERALS  — 
reference  to,  6. 

FLAMBEAU  LIGHTS  — 
unlawful,  277. 


INDEX  343 


FLUCTUATING  VALUE - 
of  oil  lands,  117. 

FORECLOSURE  - 

as  terminating  lease,  69. 

FORFEITURE— (see  TERMINATION). 
in  general,  70. 

by  lessor  who  has  parted  with  title,  28. 
must  be  declared,  36,  71. 
payments  to  prevent,  62. 
ipso  facto  clause,  65. 
not  favored,  70. 
burden  on  one  claiming,  71. 

FORM- 

of  lease,  in  general,  27. 

leaving  blanks  when  filling  in,  27. 

FORTUITOUS  EVENT  — 
loss  of  oil  by,  103. 
ris  major  as  excusing  delay,  81. 

FRAUD - 

possessors,  21,  37. 

in  contract,  45. 

in  general,  116. 

must  be  proved,  116,  123. 

in  transfer  of  property  for  corporate  bonds,  145. 

FRENCH  - 

authorities,  reference  to,  48. 

FRUITS  - 

oil  and  gas  as,  12,  22. 

FUGITIVE  CHARACTER  OF  OIL  AND  GAS- 
consideration  of,  9. 

FURNISHERS  OF  MATERIALS  — 
lien  of,  98. 


344  INDEX 

GAS-  G. 

legal  status  of,  6. 

as  mineral,  6. 

divisibility  from  oil  under  lease,  42. 

acceptance  of  rentals,  64,  89. 

well,  as  compliance  with  oil  lease,  85. 

in  general,  136. 

use  and  production  of,  136. 

connecting  pipe,  137. 

leaking  pipes,  137. 

odorless,  137. 

responsibility  of  supplying  company,  137. 

as  dangerous  substance,  137. 

blowing  out  pipe,  138. 

duty  as  to  pipes  in  highway,  138. 

rights  of  taxpayers  in  re  use  of  streets,  139. 

use  of  streets  for  mains,  139. 

cutting  off  for  arrears,  140. 

rights  of  municipality  to  acquire,  140. 

rates,  140. 

larceny  of,  141. 

consolidation  of  companies,  141. 

fixtures,  141. 

manufacturers  of,  141. 

control  by  Department  of  Conservation,  180. 

common  purchaser  statutes,  184. 

municipalities  and  parishes  may  acquire  lines,  etc.,  256. 

damage  to  plants,  261. 

diverting,  262,  263. 

exemption  of  pipe  lines  from  taxation,  269. 

to  be  confined  to  original  stratum,  271. 

proper  equipment  for  wells,  273. 

and  oil  not  to  be  produced  from  same  strata,  273. 

and  oil  to  be  separated,  274. 

how  much  may  be  taken  from  well,  277? 

flambeau  lights  unlawful,  277. 

to  be  metered,  277,  282. 

burning  in  day,  278. 

extraction  of  gasoline  from,  279. 


INDEX  345 


GASOLINE  — 
casinghead,  87. 
storage  of,  131. 
statute  in  re,  160. 
extracting  from  gas,  279. 

GOOD  FAITH  - 

of  possessor,  20,  21,  25. 

GOVERNMENT  LANDS— (see  PUBLIC  LANDS), 
minerals  under,  15. 
lease  of,  31. 

GRANT  - 

as  name  for  lease,  36. 

GUSHER  BEND  — 
field,  2. 

H. 

HAND  DRILLING  - 
danger  of,  129. 

HAYNESVILLE  — 
fields,  3. 

HAZARDOUS  BUSINESS  — 
producing  as,  128. 
refining  as,  131. 

HEIRS  — 

take  subject  to  lease,  33,  40. 

obligations  of,  41. 

succession  sale  as  terminating  lease,  69. 

HERIDITAMENT-INCORPOREAL  - 
as  name  for  lease,  36. 

HIGH  WATER  MARK  — 

as  determining  ownership  of  land,  16. 

HIGHWAYS  - 

gas  lines  crossing,  105. 
gas  pipes  in,  138. 


346  INDEX 

HISTORY - 

of  oil  industry  in  Louisiana,  1. 

HOLE— (see  WELL). 
well  means,  92. 
reducing  size  of,  97. 

HOMER  — 
field,  3. 

HOMESTEAD - 
lease  of,  33. 

HOOK  - 

injury  from,  129. 

HOPE- 

acquired  by  lessee,  29. 

HOT  WATER  PIPE  - 
injury  from,  128. 

HOUSE  LEASE - 

compared  to  oil  lease,  26. 

HUSBAND  AND  WIFE- 
in  general,  32. 
paraphernal  property,  32. 
joinder  of  in  lease,  32,  33.. 
lease  of  homestead  by,  33. 
rights  of  husband,  32. 

I. 

ILLEGAL  POSSESSOR— (see  POSSESSOR). 
generally,  21. 

ILLUMINATING  OIL  — 

inspection  of  by  Board  of  Health,  131. 

IMMOVABLES  — 

interests  in  minerals  as,  23. 

IMPLIED  OBLIGATIONS  AND  CONDITIONS  - 
to  drill,  29,  87. 
clearly  expressed  obligation  not  construed  as,  36. 


INDEX  347 

IMPROVEMENTS  - 
by  possessors,  21,  25. 

INADEQUATE  CONSIDERATION  - 
for  lease,  44. 

INCIDENTAL  EXPENSES - 

of  drilling,  by  illegal  possessor,  21. 

INCORPOREAL  HERIDITAMENT— 
as  name  for  lease,  36. 

INDEPENDENT  OPERATORS - 
reference  to,  4. 

INDIVISIBLE  OBLIGATIONS  - 
in  general,  41. 

INDIVISION,  OWNERS  IN—  (see  CO-OWNERS). 
in  general,  17,  33. 

INDUSTRY - 

oil  in  general,  1. 
mining  as  new,  3. 
misunderstandings  of,  4. 

INFANTS—  (see  MINORS). 

INGRESS  AND  EGRESS - 
by  lessee,  29. 

INJUNCTION— (see  PROCEDURE). 
by  co-owner,  18. 

as  remedy  against  trespasser,  22,  120. 
against  drilling,  etc.,  74. 
when  not  proper  remedy,  120. 
discretion  of  court,  121. 
against  lessee  of  State,  127,  244. 
against  Department  of  Conservation,  220. 

INJURIES,  PERSONAL— (see  PERSONAL  INJURIES). 
in  general,  127. 

INNOCENT  THIRD  PARTIES— (see  THIRD  PERSONS). 
in  general,  39. 


348  INDEX 

INSEVERABLE  OBLIGATIONS - 
in  general,  42. 

INSPECTION  OF  OILS- 
in  general,  131. 

INSTRUMENT,  WRITTEN  - 

construction  and  interpretation  of,  36. 

INSUFFICIENT - 

consideration,  45,  47. 

development,  claim  for  damages  for,  74. 

INTENTION — (see  CONSTRUCTION  AND  INTERPRETATION). 
of  parties  to  lease,  35. 
to  abandon,  72). 
to  plug  well,  notice  of,  280. 

INTERDICTS  - 

lease  of  lands  of,  32,  260. 

INTEREST  - 

undivided,  17,  33. 

INTERPRETATION — (see  CONSTRUCTION  AND  INTERPRETATION). 
in  general,  35. 
difficulty  of,  4. 
French,  in  re  potestative  condition,  48. 

INTERRUPTION  OF  PRESCRIPTION  - 
of  mineral  rights,  15,  76. 

INTERVENTION  - 

in  suit  affecting  lease,  120. 

INTRODUCTION- 
to  book,  1. 

IPSO  FACTO  FORFEITURE  CLAUSE— 
in  lease,  65. 

ISLANDS— 

ownership,  15. 


INDEX  349 


JENNINGS— 
field,  2. 

JOINT  OWNERS—  (see  CO-OWNERS). 
in  general,  17,  33. 

JOINT  LEASE— 

by  husband  and  wife,  32,  33. 
in  general,  42. 

JOINT  OBLIGATION— 
to  drill,  42. 

JUDGMENT— (see  PROCEDURE). 
acquiescence  in,  122. 
sequestration  holds  until  final,  125. 

JUDICIAL  NOTICE  — 

of  vagrant  character  of  oil  and  gas,  9. 
of  dangerous  character  of  gas,  136. 
of  odorless  nature  of  natural  gas,  137. 

JUDICIAL  PARTITION— (see  PARTITION 
of  mineral  lands,  18,  30,  67,  70. 

JURISDICTION- 

in  re.  sequestration,  125. 

JUS  IN  RE— 

conveyance  of  interest  in  minerals  as,  23. 

KIND— 

no  partition  of  oil  lands  in,  18. 

KNOCKING  DOWN  PIPE— 
injury  from,  130. 

KEROSENE— 

inspection  of  by  Board  of  Helath,  131. 
explosion  of,  132. 

L. 
LACHES— 

in  asserting  claim  to  land,  24,  116.' 


350  INDEX 

LAKE  BOTTOMS- 
ownership  of,  15. 

LAND— 

fruits  of,  12. 

waste,  15. 

islands,  15. 

beds  of  streams,  lakes,  etc.,  15. 

public,  15. 

swamps  and  overflowed,  15. 

silt,  etc.,  15. 

partition  of,  18. 

LANDLORD*—  (see  LESSOR). 
in  general,  27. 

LANDOWNERS- 
loss  by,  4. 
cupidity  of,  4. 

complaints  as  to  neighbors  use  of  land,  10. 
agent  of,  13. 
adjoining,  18. 

LANGUAGE  OF  CONTRACT— 
showing  intention,  35. 

LAW- 

antiquated  provisions  in  re.  minerals,  3. 

statutory,  3. 

stipulations  relative  to  oil  and  gas,  3. 

provisions  of  codes,  3. 

made  by  courts,  4. 

reference  to  U.  S.  statutes,  7. 

termination  of  contract  by  effect  of,  69. 

LAWFUL— 

intention  of  contract,  must  be. 

LAWMAKERS— 

silence  of  as  to  oil  and  gas,  3. 
did  not  contemplate  oil  fileds,  5. 


INDEX  351 


LAWYERS — (see  ATTORNEYS). 
advice  of,  21,  37. 

LEAKS— 

in  valve  on  tank  car,  107. 
in  pipe,  137. 

LEASE — (see  LESSOR,  LESSEE). 
first,  1. 

ambiguities  in,  4. 
by  owner  of  surface,  12. 
listing  for  sale  with  agent,  13. 
top  or  second,  13,  30,  40,  76. 
of  lands  of  co-owners,   18,  33. 
of  lands  of  usufructuary,  20. 
of  right-of-way,  20. 
name  given  is  immaterial,  25. 
in  general,  25. 
in  class  by  itself,  26. 
compared  to  lease  of  farm  and  houses,  26. 
legal  provisions  applied  to,  26,  29. 
well  drilled  before  singing,  26. 
how  acquired,  26. 
signatures  to,  27. 
blanks  in,  27. 
form  of,  27. 
lessor  in  general,  27. 
lessee  in  general,  29. 
of  public  lands,  31. 
of  lands  of  minors,  32. 
of  lands  of  interdicts,  32. 
of  lands  of  married  women,  32. 
of  community  property,  32. 
wife  assuming  obligations  under,  32. 
Federal  Leasing  Act,  32. 
of  homestead,  33. 
of  lands  of  co-owners,  33. 
eviction  from  portion  of,  34. 
construction  and  interpretation,  35. 
name  given  is  immaterial,  36. 


362  INDEX 

LEASE — (see  LESSOR) — (CONTINUED). 
term,  37. 
assignment,  39. 
third  persons,  39. 
recordation  of,  40. 
divisibility,  41. 
joint  lease,  42. 
community,  43,  59. 
consideration,  43. 
potestative  condition,  47. 
"sole  and  only"  clause,  54. 
rentals,  62. 
payments,  62. 

tender  of  payments  under,  65. 
extensions,  67. 

default  in  payments  and  performance,  67. 
termination  of,  69. 
abandonment,  71. 

damages  for  non-performance,  usurpation,  etc.,  73. 
mortgage  of,  74;  statute,  254. 
warranty  of,  75. 
option  under,  81. 
as  license,  82. 
development  under,  84. 
development  of  substance  not  covered  by,  86. 
diligence  required  under,  87. 
commencement,  92. 
amount  of  production,  92. 
cessation  and  resumption,  93. 
lesion,  fraud,  error,  116. 
statute  in  re.  school  lands,  239. 
statute  in  re.  state  lands,  240,  243. 
statute  in  re.  Caddo  Levee  Board  lands,  245. 
statute  in  re.  minors  and  interdicts,  247,  248. 
statute  in  re.  Cross  Lake  Lands,  249. 
statute  in  re.  cancellation  of,  149. 
form  of,  292. 

LEGAL  STATUS- 
of  oil  and  gas,  6. 


INDEX  353 

LEGISLATION- 

reference  to,  3,  4,  6,  7. 

LESION- 

in  general,  45,  116. 

LESSEE—  (see  LEASE). 
in  general,  29. 

right  to  unexpected  substances,  1. 
cupidity  of,  4. 

not  to  be  dismissed  from  suit  upon  disclosing  lessor,  22,  31. 
duty  as  to  fences,  28. 
hope  acquired  by,  29. 
real  right  of,  29. 

need  only  comply  with  terms  of  lease,  29. 
rights  to  surface,  29. 
administration  of  surface,  29. 
no  rights  after  parting  with  title,  30. 
possession  against  lessor,  30. 
as  tenant,  30. 

cannot  force  change  in  lessor's  title,  30. 
taking  two  leases,  must  pay  rentals  on  both,  30. 
must  be  disturbed  in  possession  to  sue,  30. 
denial  of  lessor's  title,  30. 
slander  of  title,  31. 

duty  to  deliver  royalty  to  proper  party,  31. 
necessary  party  to  suit,  31,  120. 
entitled  to  well  drilled  by  lessor,  31. 
lease  construed  against,  36. 
obligations  indivisible,  41. 
when  cannot  demand  return  of  payments,  65. 
injunction  against  lessee  of  State,  244. 
duty  to  furnish  cancellation,  149. 

LESSOR—  (see  LEASE). 
in  general,  27. 

cannot  grant  valid  top  lease,  13. 
usurpation  of  rights  of  lessee,  21,  28,  29. 
disclosure  of  by  lessee  when  sued,  22. 
must  have  title,  24,  30. 


354  INDEX 

LESSOR — (see  LEASE) — (CONTINUED). 
custom  to  lease  land,  25. 

cannot  complain  when  there  is  development,  27. 
no  rights  after  parting  with  title,  28. 
cannot  claim  he  is  not  owner,  28. 
refusing  to  perform,  should  abandon,  28. 
necessary  party  to  suit,  28. 
must  look  after  fences,  etc.,  28. 
cannot  keep  consideration  and  ask  dissolution,  28. 
owes  proceeds  of  well  to  lessee,  31. 
obligations  indivisible,  41. 
can  demand  cancellation,  149. 

LETTER  - 

presumption  as  to  receipt  of,  63. 

LEVEES - 

pipe  lines  crossing,  106;  statute,  227. 

LIABILITY,  EMPLOYERS'  — 
reference  to  law,  127. 

LICENSE  - 

as  name  for  lease,  36. 

leases  as,  44. 

lease  terminable  at  will,  82. 

lease  is  not,  82. 

in  general,  82. 

LICENSE  TAX- 

reference  to,  133,  136. 

on  manufacturers  of  gas,  141. 

statutes,  153. 

constitutional  provisions,  270. 

LICENSEE  — 
injury  to,  131. 

LIENS - 

under  drilling  contract,  95. 
for  work  and  materials,  98. 

LIMITATIONS,  STATUTES  OF— (see  PRESCRIPTION,). 
for  non-user  of  mineral  rights,  15,  76. 


INDEX  355 

LINES - 

meander  and  high  water,  16,  17. 
action  of  boundary,  19. 

LIQUIDATED  DAMAGES  - 
rentals  as,  63. 

LIS  PENDENS  — 
notice  of,  40,  41. 

LITIGATION  - 

development  pending,  85. 

LITIGIOUS  RIGHTS— 
sale  of,  83. 

LOG  OF  WELL- 
required,  272. 

LOCATION  - 

on  U.  S.  lands,  16. 
of  wells,  19. 

LOSS  - 

of  oil  from  forfuitous  cause,  103. 

of  oil  from  storage,  104. 

of  oil  from  failure  to  close  valve  in  tank  car,  107. 

LOUISIANA  PUBLIC  SERVICE  COMMISSION  —  (see  RAILROAD 

COMMISSION). 
formerly  Railroad  Commission,  106. 

LUNATICS  - 

lease  by,  32,  248. 

M. 

MACHINERY,  etc.  — 
line  on,  98. 
in  general,  99. 

right  to  remove  from  lease,  99. 
damages  for  abuse  of,  99. 
mortgage  of,  99. 
as  accessory  to  well,  99. 


356  x  INDEX 

MAILING  LETTER  — 

presumption  of  receipt,  63. 

MARRIED  WOMEN— (see  HUSBAND  AND  WIFE,). 

MATERIALS  - 

lien  for  furnishing,  98. 

MEAN  HIGH  WATER  MARK- 

ownership  of  land  controlled  by,  16. 

MECHANICAL  MEANS - 
of  producing  oil,  19. 

MEANDER  LINES  - 

as  controlling  ownership  of  land,  17. 

MEASURE  OF  DAMAGES—  (see  DAMAGES). 

MIGRATORY  — 

character  of  oil  and  gas,  14. 

MINES - 

contrasted  to  oil  wells,  5. 

defined  under  Employers'  Liability  Act,  8. 

right  of  usurfructuary  to,  19. 

laws  in  re,  23. 

MINERALS —  (see  OIL  AND  GAS,  MINERAL  RIGHTS,  etc.) 
oil  and  gas  as,  6,  7. 
waters,  7. 

with  fixed  situs,  11. 
ownership  of,  15. 
in  place,  20. 

conveyance  of  as  jus  in  re,  23. 
proof  of  ownership  of,  23. 
acquisition  of,  23,  26. 

MINERAL  RIGHTS  - 
in  general,  13,  76. 
as  servitude,  15,  78. 
prescription  of,  15,  78. 
reservation  in  Cross  Lake,  17. 
owner  of  not  tenant  in  common  with  surface  owner,  17. 


INDEX  357 


MINERAL  RIGHTS— (CONTINUED). 
conveyance  as  jus  in  re,  23. 
acquisition  of,  23. 
as  immovables,  23. 
as  covered  by  sale  of  fee,  24. 
sale  of,  76,  77. 

segregation  or  dismemberment  of,  76. 
reservation  of,  77. 
exception  of,  77. 

consideration  for  reservation,  78. 
whether  corporeal  or  incorporeal,  79. 
interruption  of  prescription,  79. 
possessessory  action,  79. 
selling  interest  to  attorney,  80. 

MINING - 

a  new  industry  in  State,  3. 
"mining  pursuits,"  6. 
producing  oil  and  gas,  as,  8. 
laws  in  re,  23. 

MINING  AND  MINERALS,  DEPARTMENT  OF- 
reference  to,  109. 

MINORS  - 

lease  of  lands  of,  32. 
injuries  to,  131. 
statutes,  259,  260. 

MISDEMEANORS—  (see  CRIMES  AND  OFFENSES). 

MISUNDERSTANDINGS  OF  OIL  INDUSTRY - 
reference  to,  4. 

MIXING  OIL- 
in  storage,  103. 

MORAL  GOOD  FAITH  - 
of  possessor,  21. 

MOREHOUSE  — 

drilling  in,  276,  281,  283,  284. 
use  of  gas  in,  288. 


358  INDEX 

MORTGAGE - 
in  general,  74. 
of  lease,  74;  statute,  254. 
of  pipe  lines,  106;  statute,  265. 
of  tank  cars,  107. 

MUNICIPALITY - 

right  to  acquire  gas  lines,  106,  140;  statute,  256. 
storage  of  oil  within,  132. 
exemption  of  gas  pipe  lines  for  taxation,  270. 

MUTUALITY  - 

lack  of  in  lease,  59. 

N. 

NAME  GIVEN  CONTRACT  — 
is  immaterial,  25. 

NATURAL  GAS—  (see  GAS). 

NATURAL  RESOURCES  - 
tax  on,  270. 

NAVIGABLE  STREAMS  - 
ownership  of,  15. 

NECESSARY  PARTIES  TO  SUIT  — 
affecting  leases,  28,  31. 

NECESSITY  — 

of  piping  and  storing  oil,  103. 

NEGLIGENCE —  (see  PERSONAL  INJURIES). 
under  drilling  contract,  95. 
leaking  tank  car,  107. 
in  general,  127. 

NEGOTIABLE  RECEIPTS  — 
for  oil,  107. 

NEIGHBORS — (see  ADJOINING  LANDOWNERS)" 
in  general,  18. 

NON-USER,  EFFECT  OF  — 
on  mineral  rights,  15,  78. 


INDEX  359 


NOTICE—  (see  JUDICIAL  NOTICE). 

judicial,  as  to  character  of  oil  and  gas,  9. 

of  refusal  to  accept  payments,  66. 

of  intention  to  drill,  272. 

of  fires,  breaks  in  lines,  etc.,  275. 

to  observe  conservation  rules,  276. 

of  intention  to  plug  well,  280. 

NUDUM  PACTUM- 

perpetual  option  as,  37,  82. 
generally,  59. 
payments  under,  66. 

O. 
OBLIGATIONS  - 

assumption  by  wife,  32. 

implied  as  to  drilling,  29,  87. 

when  cl^r.rly  expressed  not  considered  as  implied,  36. 

in  indivision,  41. 

joint,  42. 

ODOR  OF  GAS  — 

judicial  notice  of,  137. 

OFFENSES —  (see  CRIMES  AND  OFFENSES). 

OFFICERS  - 

transactions  with  corporation,  45. 

OFFSETS  - 
drilling,  94. 

OIL  AND  GAS- 

industry  in  general,  1. 

unknown  when  old  laws  were  passed,  3,  5. 

legal  status  of,  6,  8. 

vagrant  character,  9,  14,  19. 

situs  of,  9. 

analogy  to  water,  10. 

must  be  reduced  to  possession,  10. 

ownership  of,  10,  12. 

compared  to  minerals  with  fixed  situs,  11. 

as  part  of  realty,  11. 


360  INDEX 

OIL  AND  GAS— (CONTINUED). 

not  fruits,  12. 

owner's  rights  to,  12. 

severance,  exception,  reservation,  13,  16. 

as  covered  by  sale,  14. 

right  of  usufructuary  to,  20. 

proof  of  ownership  of,  23. 

included  in  sale  of  fee,  24. 

lease,  25. 

divisibility  under  laese,  42. 

options,  80. 

license,  82. 

development,  84. 

gas  well  as  compliance  with  lease,  85. 

finding  and  producing  other  substances  than,  86. 

amount  produced,  92. 

pumping,  94. 

drilling  contracts,  95. 

waste  of,  97. 

conservation  of,  99. 

conversion  of,  99. 

sale  of,  100. 

failure  to  deliver,  103. 

commission  for  sale  of,  103. 

storage,  piping,  transportation,  103. 

conservation,  107. 

sequestration,  118. 

inspection  of,  131. 

explosive,  131. 

loss  from  storage,  104. 

commingling  while  in  storage,  104;  statutes,  149. 

conservation  rules,  271. 

not  to  be  produced  from  different  strata,  273. 

to  be  separated,  274. 

forms,  290. 

unreported  decision,  303. 

OLD  AND  STALE  CLAIMS - 

not  looked  on  with  favor,  24,  116. 


INDEX  361 


ONE  DOLLAR  — 

as  consideration,  44. 

OPERATIONS  (see  DEVELOPMENT). 

beginning  as  curing  defects  in  lease,  27. 
what  constitutes  commencement  of,  92. 

OPERATORS,  INDEPENDENT  - 
reference  to,  4. 

OPTIONS - 

termination  of  for  failure  to  make  payment,  62. 
in  general,  80. 
must  be  exercised,  81. 
to  terminate  lease,  81. 
perpetual,  81. 
to  drill  or  not,  82. 
payment  of  earnest,  82. 
to  refuse  to  carry  out  contract,  118. 

ORDINARY  AND  INCIDENTAL  EXPENSES 
of  drilling,  21. 

OUACHITA  — 

drilling  in,  276,  281,  283,  284. 
use  of  gas  in,  288. 

OUTLET  CAP  ON  TANK  CAR  — 
leaking,  107. 

OUTPUT  OF  \YELL  - 
sale  of,  101. 

OVERFLOWED  LANDS  — 
ownership  of,  15. 

OVER  PRODUCTION  — 
statute  in  re,  209. 

OWNERS  — 

of  minerals,  11. 

of  soil,  12,  13. 

of  surface,  rights  of,  12,  14,  19,  23. 

burning  wefts,  12. 


362  INDEX 

OWNERS— (CONTINUED). 

lease  by,  12. 

cannot  usurp  rights  of  lessee,  13. 

of  banks  of  streams,  etc.,  16,  22. 

equitable,  16,  22. 

of  wells,  boundary,  19. 

in  indivision  (see  Co-Owners). 

entitled  to  oil  produced  by  trespassers,  21. 

may  claim  royalty  delivered  to  wrong  party,  31. 

using  own  pipe  lines,  105. 

OWNERSHIP  OF  MINERALS  - 
subject  to  possession,  10. 
in  general,  12,  15. 
dismemberment  of  title,  14. 
gives  right  to  use  land  legitimately,  18. 
public  lands,  15. 
co-owners,  17. 
adjoining  landowners,  18. 
usufructuaries,  19. 
right-of-way,  20. 

trespassers  and  illegal  possessors,  21. 
subject  to  police  power,  22. 
in  indivision,  33. 
of  stored  oil,  103. 

P. 

PARAPHERNAL  PROPERTY - 
lease  of,  32. 

PARISHES  — 

right  to  acquire  pipe  lines,  106. 

right  to  acquire  gas  lines  and  plants,  statute,  256. 
entitled  to  part  of  license  tax,  270. 

PAROL  EVIDENCE  - 
of  ownership,  23. 

PART  OF  REALTY  - 
oil  and  gas  as,  11. 


INDEX  363 


PARTIES  — 
third,  39. 
to  suit,  121. 

PARTITION  — 
of  oil  lands,  18. 

lessee  cannot  force,  30. 
sale  terminates  lease,  67. 
extra-judicial,  70. 

PARTNERSHIP  - 
in  general,  148. 
accounting,  148. 

PAYING  QUANTITIES  CLAUSE  - 
in  lease,  38,  92,  93. 

PAYMENTS  - 
in  general,  62. 

illegal  possessor  owes  to  owner,  22. 
ex-lessor  cannot  urge  failure  of,  28. 
ex-lessee  cannot  make,  30. 

must  be  made  on  both  leases  where  two  are  taken,  30. 
royalty  must  be  delivered  to  right  party,  31. 
failure  to  make  when  due,  62. 
to  prevent  forfeiture,  62. 
when  due,  62. 

burden  of  proof  on  one  alleging,  62. 
mailing,  63. 

"within"  certain  time,  63. 
"after"  certain  time,  63. 
refusal  to  accept,  63. 
acceptance  under  void  lease,  63. 
past  due,  63,  65. 
deposit  in  bank,  63. 
as  liquidated  damages,  63. 
suspension  of,  64. 
evidence  of,  64. 
by  former  lessee,  64. 
acceptance  of,  64. 
term  of,  64. 


364  INDEX 

PAYMENTS— (CONTINUED). 

agreement  that  none  made,  64. 

for  unexpected  substances,  64. 

by  check,  65. 

after  discovery,  65. 

tender  of,  65. 

cannot  demand  return  of  after  delay,  65. 

refusal  of,  63,  66. 

notice  of  refusal  to  accept,  66. 

when  due  on  demand,  67. 

default  in,  68. 

PENALTIES — (see  CRIMES  AND  OFFENSES). 

PENDENCY  OF  SUIT- 
lis  pendens,  40,  41. 
development  during,  85. 

PERCOLATING  WATER  — 
reference  to,  10. 

PERFORMANCE  — 
tender  of,  65. 
default  in,  68. 
damages  for  failure  of,  73. 
specific,  117. 

PERPETUAL  LEASE - 
consideration  of,  81. 

PERSONAL  INJURIES  - 
damages  for,  127. 
in  general,  127. 
from  hot  water  pipe,  128. 
from  defective  derrick  and  swivel,  128. 
from  hand  drilling,  129. 
from  broken  hook,  129. 
from  defective  tongs,  129. 
from  explosion  in  tank  car,  129. 
from  pulling  pipe,  130. 
from  pump,  130. 
from  knocking  down  pipe,  130. 


INDEX  365 


PERSONAL  INJURIES— (CONTINUED). 
from  falling  from  scaffold,  130. 
while  building  tank,  130. 
to  licensee,  131. 
to  minor,  131. 
from  exploding  oil,  132. 
from  gas,  137. 

PERSONS,  THIRD—  (see  THIRD  PERSON:). 
in  general,  39. 

PETITORY  ACTION  — 
reference  to,  120. 

PETROLEUM  —  (see  OIL  AND  GAS). 
as  mineral,  6. 
character  of,  6. 

PINE  ISLAND  — 
field,  2. 

PIPE- 

in  highways,  47. 

lien  on,  98. 

mortgage  of,  99. 

removal  of,  99. 

injury  from  hot  water,  128. 

injury  from  pulling,  130. 

injury  from  knocking  down,  130. 

leaking,  137.     • 

connecting  gas,  137. 

blowing  out,  138. 

PIPE  LINES—  (see  also  PIPING). 
in  general,  103. 

as  common  carriers,  105 ;  statutes,  223,  228. 
owners  using,  105. 
crossing  levees,  106;  statute,  227. 
mortgage  of,  106;  statute,  265. 
acquisition  by  municipalities,  106. 
acquisition  by  parishes,  106;  statute.  21'6. 
gas,  136,  137,  138,  139. 


366  INDEX 

PIPE  LINES— (CONTINUED). 

old  incorporation  law,  145. 

common  purchasers  of  gas,  184. 

purchasing  oil,  208. 

right  of  expropriation,  224. 

rights  and  duties  of,  statute,  229. 

powers  of  Railroad  Commission  over,  statute,  229. 

exemption  of  gas  from  taxation,  269. 

notification  of  breaks  in,  275. 

PIPING  — 

in  general,  103. 

reasonableness  of  charges  for,  103,  104. 

necessity  of,  103. 

bond  for  running  oil,  104. 

cost  of  in  sequestration,  126. 

PLUGGING - 

dry  and  abandoned  wells,  272. 
notice  of,  280. 

POLICE  — 

of  lease  by  lessee  not  required,  29. 

POLICE  POWER - 
in  general,  22. 
in  re  storage  of  oil,  132. 

POLLUTION — (see  CONTAMINATION). 

POSSESSION  — 

of  oil  and  gas,  necessary,  10. 

right  to  reduce  to,  12. 

writ  of,  17,  121. 

of  lessee  against  lessor,  30. 

taking  by  heirs,  33. 

of  undivided  interest,  33. 

POSSESSORS  — 
in  general,  20,  21. 
damages  due  by  unlawful,  21. 
under  Civil  Code,  21. 


INDEX  367 


POSSESSORS— (CONTINUED). 

improvements  by,  21,  25. 

in  bad  faith,  21. 

injunction  against,  22,  120. 

of  Government  lands,  22. 

illegal,  liable  for  value  of  oil,  22. 

illegal,  liable  for  rents  and  revenues,  22. 

illegal,  not  entitled  to  minerals,  22. 

stale  claims  against,  25. 

of  surface,  lessor,  28. 

must  be  disturbed  to  sue,  30. 

on  advice  of  counsel,  37. 

POSSESSORY  ACTION  - 
reference  to,  119. 

POTESTATIVE  CONDITION  — 

codal  provisions,  45. 

in  general,  47. 

insufficient  consideration,  47,  62. 

obligation  to  develop,  47. 

right  to  abandon,  47. 

Code  Napoleon,  48. 

right  to  bore  on  several  tracts,  49. 

lease  for  99  years,  51. 

right  to  withdraw,  53,  55. 

"sole  and  only"  clause,  53. 

community  lease,  58. 

fulfillment  cures,  60. 

action  to  annul  on  account  of,  60. 

development  cures,  60. 

work  on  land  of  another,  60. 

estoppel,  61. 

partial  performance,  61. 

who  may  complain,  61. 

POWER  OF  SELF-TRANSMISSION  — 
of  oil  and  gas,  9. 

PRAIRIE  MAMOU  — 
field,  2. 


368  INDEX 

PRESERVING  OIL- 

cost  of  by  illegal  possessor,  21. 

by  sheriff  of  sequestered  oil,  103,  124. 

PRESCRIPTION  - 

of  mineral  rights,  in  general,  15,  76. 
interruption  of,  15,  76. 

PRESSURE  - 

standard  basis  of,  285. 

PRESUMPTION  - 

as  to  letter  mailed,  63. 

PRICE  — 

in  question  of  lesion,  116. 

PROCEEDS  - 

of  well  drilled  by  lessor,  31. 

PROCEDURE  - 
in  general,  118. 
rights  of  equitable  owner,  16. 
writ  of  possession,  17,  121. 
injuction  against  lessee  of  co-owner,  18. 
judicial  partition,  18. 
dismissal  of  suit  by  co-owner,  18. 
actions  of  boundary,  19. 
injunction  against  trespasser,  22. 
lessor  necessary  party  to  suit,  28. 
lessee  must  be  disturned  in  possession  to  sue,  30. 
lessee  may  claim  damages  for  slander  of  title,  31. 
lessee  necessary  party  to  suit,  31. 
suit  to  annul  part  of  lease,  34. 
direct  action  to  annul  for  potestative  condition,  60. 
possessory  action  in  re  mineral  rights,  80. 
appeal  from  Railroad  Commission  rules,  106. 
appeal  From  Department  of  Conservation  rules,  111. 
trial  of  oil  and  gas  cases  by  preference,  119;  statute,  150. 
Railroad  Commission  matters,  119. 
Department  of  Conservation,  powers,  119,  220. 
possessory  action,  119. 


INDEX  369 

PROCEDURE— (CONTINUED). 

action  to  rescind  lease,  120. 

question  of  title,  120. 

slander  of  title,  120. 

intervention,  120. 

•petitory  action  and  trespass,  120. 

injunction,  120.     (see  INJUNCTION). 

parties  to  suit,  121. 

review  of  discretionary  matters,  121. 

judgments,  122.     (see  JUDGMENTS). 

sequestration,  124.     (see  SEQUESTRATION). 

statute  in  re  cancellation  of  leases,  149. 

statutes  relative  to  lessees  of  State,  244. 

dismissal  of  appeal,  122. 

PROCESS  OF  MINING - 
reference  to,  7. 

PRODUCING  SUBSTANCES  OTHER  THAN  OIL  AND  GAS- 
in  general,  86. 

PRODUCTION— (see  DEVELOPMENT). 
amount  of,  92. 

PRODUCERS - 

understanding  of,  40. 

PROOF - 

burden  on  agent  claiming  commission,  13. 
of  ownership,  23. 

burden  on  one  alleging  payment,  62. 
burden  on  one  claiming  forfeiture,  71. 
of  fraud  and  error,  116,  123. 

PROPERTY - 

community,  32. 
tax,  134. 

PROMISE  - 

of  development,  44. 

PRORATING  OIL  IN  STORAGE  — 
effect  of,  103. 


370  INDEX 

PROTECTION  —  (see  OFFSETS). 

PROVISIONAL  SALE- 
of  tank  cars,  107. 

PUBLIC  LANDS  - 
in  general,  15,  31. 
locators  on,  16. 
equitable  owners  of,  16. 
Cross  lake,  1 7 ;  statute,  249. 
State  lands,  lease,  31,  32;  statutes,  240,  243. 
United  States,  32. 
school,  32 ;  statute,  239. 
Caddo  Levee  Board,  32 ;  statute,  245. 

PUBLIC  RECORDS - 

cancelling  lease  from,  71. 

PULLING  PIPE  - 

from  abandoned  well,  71. 
injury  from,  130. 

PUMPS  — 

use  by  adjoining  landowner,  10,  18. 
in  general,  94. 
injuries  from,  130. 

PUNISHMENT— (see  CRIMES  AND  OFFENSES). 

PURCHASERS  — 

common,  of  gas,  23 ;  statute,  184. 
of  oil,  23 ;  statute,  208. 

PUTTING  IN  DEFAULT  — 
in  general,  66,  68. 

Q. 

QUANTITIES  — 

oil,  in  paying,  38,  93. 

of  oil,  as  fixing  taxation,  270. 

QUARRIES  - 

rights  of  usufructuaries  to,  19. 

QUARTERLY  PAYMENTS  —  (see  PAYMENTS). 


INDEX  371 

R. 


RAILROAD  COMMISSION  — 

jurisdiction  over  pipe  lines,  105;  statutes,  241. 
now  Louisiana  Public  Service  Commission,  106. 

RAILROAD  RIGHT-OF-WAY  — 
minerals  under,  20. 

RATES  — 

pipe  line,  105. 
gas,  140. 

REAL  RIGHT  — 

grant  or  reservation  as,  15. 

drilling  as,  11. 

of  lessee,  29. 

as  name  for  lease,  36. 

REALTY  — 

oil  and  gas  as  part  of,  11. 

REASONABLENESS  — 

of  storage  and  piping  charges,  103,  104. 

RECEIPTS  — 

warehouse  for  oil,  107;  statute,  168. 

RECEIVERSHIP  — 

CEASING  OPERATIONS  as  cause  for,  145. 
of  corporations,  145. 

RECISSION  —  (see  TERMINATION). 

cannot  be  claimed  by  lessor  who  has  sold  part,  30. 
right  to  because  of  eviction  from  part,  34. 
procedure,  120. 

RECORDS - 

need  not  show  action  of  lessee,  39. 

of  title,  40. 

cancellation  of  lease  from,  71,  149. 

RED  RIVER  - 
field  2. 


372  INDEX 

REDUCTION  — 

to  possession,  oil,  10. 

REFINING  - 

.  as  dangerous  business,  131. 

REFUSAL - 

to  accept  payments,  63,  66. 

REGISTRY  - 

of  action  under  lease,  39. 

REGULATIONS  - 
under  police  power,  23. 

REIMBURSEMENT  — 
of  illegal  possessors,  21. 

REMEDY—  (see  PROCEDURE). 

REMOVAL - 

of  machinery  from  lease,  72. 

RENTALS— (see  PAYMENTS). 
due  by  illegal  possessor,  22. 
refusal  to  accept,  63. 
construed  as  liquidated  damages,  63. 

REPLACEMENT  - 

of  capital  stock,  144. 

REPORTS - 

required  under  license  tax  law,  154. 

to  be  furnished  under  gasoline  tax  law,  160. 

by  sellers  and  users  of  gas,  180. 

required  by  Conservation  Department,  278. 

by  corporations,  141. 

RESERVATION  S- 
in  general,  13,  76. 
of  minerals  in  Cross  lake,  17,  249. 
no  consideration  necessary  for,  46. 
of  acreage  around  wells,  73. 


INDEX  373 


RESUMPTION  — 

of  development  after  cessation,  93. 

RETURN  OF  RENTALS- 

cannot  be  asked  after  delay,  65. 

REVIEW— (see  APPEAL). 

REVOCATION  - 
of  lease,  44. 

.RICHLAND  — 

drilling  in,  276,  283,  284. 

RIGHT-OF-WAY- 

ownership  of  minerals,  20. 

RIGHTS  - 

of  drilling,  11. 

of  owner  of  surface,  12. 

to  use  of  surface,  14. 

of  way,  20. 

of  possessors  and  trespassers,  21. 

sale  of  mineral,  76. 

litigious,  83. 

RIPARIAN  OWNERS  — 
in  general,  15. 

RISK  OF  DEVELOPMENT  — 

landowners  do  not  generally  take,  25. 

RIVER  BEDS  — 

ownership  of  minerals  in,  15. 
accretions,  16. 
emergence  of  banks,  16. 

ROADS  — 

crossing  by  pipe  lines,  105. 
pipe  lines  in,  138. 

ROYALTY—  (see  PAYMENTS). 

illegal  possessor  owes  to  owner,  22. 
must  be  paid  to  right  party,  31. 
promise  of  as  consideration,  44. 


374  INDEX 

RULES  OF  DEPARTMENT  OF  CONSERVATION  - 
waste,  271. 
waste  defined,  271. 

gas  to  be  confined  to  original  stratum,  271. 
methods  of  preventing  escape  of  gas,  272. 
notice  of  intention  to  drill,  272. 
log  of  well  required,  272. 
plugging  dry  and  abandoned  wells,  272. 
proper  anchorage  required,  273. 
equipment  for  conserving  gas  to  be  provided,  273. 
separate  slush  pit  to  be  provided,  273. 
producing  oil  and  gas  from  different  strata,  273. 
strata  to  be  sealed  off,  274. 
mud  laden  fluid  to  be  applied,  274. 
fresh  water  to  be  protected,  274. 
gas  to  be  separated  from  oil,  274. 
separating  device  to  be  installed,  274. 
notification  of  fires  and  breaks  in  line,  275. 
drilling  record  to  be  kept  at  well,  275. 
conservation  agents  to  have  access  at  well,  276. 
notice  to  observe  rules,  276. 
drilling  in  Ouachita,  Richland,  Union  and  Morehouse,  276,  281, 

283. 

protection  of  shallow  sands  in  Claiborne,  277,  281. 
capacity  of  gas  wells  permitted  to  be  taken,  277. 
flambeau  lights  unlawful,  277. 
gas  to  be  metered,  277,  282. 
burning  gas  in  day,  278. 
disposition  of  waste  from  wells,  278. 
reports  required,  278. 
carbon  plants,  278. 
extracting  gasoline  from  gas,  279. 
taking  control  of  wells,  279. 
agents  to  assist  in  enforcement  of  rules,  279. 
additional  rules  to  be  promulgated,  280. 
notice  of  intention  to  plug  well,  281. 
repeal  of  inconsistent  rules,  282. 
standard  pressure  base,  285. 
swabbing  wells,  286. 


INDEX  375 

» 

RULES  OF  DEPARTMENT  OF  CANSERVATION— (CONTINUED) 
drilling  in  Bossier  and  Webster,  287. 
use  of  gas  in  Ouachita,  Morehouse,  Union,  288. 
casing  to  be  used  in  drilling,  281. 

SALE  — 

of  oil  as  real  right,  11. 

of  right  to  explore,  12. 

by  land  owner  after  listing  with  agent,  13. 

of  fee  as  covering  minerals,  24. 

laws  of,  applied  to  leases,  26. 

of  fee  as  terminating  right  of  lessee,  28. 

succession,  terminated  lease,  69. 

foreclosure,  terminates  lease,  69. 

partition,  terminates  lease,  69. 

of  mineral  rights,  76. 

of  oil,  100. 

of  output  of  well,  101. 

speculation  in  sale  of  oil,  102. 

commission  for,  103. 

of  tank  cars,  107. 

of  mineral  rights,  form,  290. 

SALT  WATER - 
damage  from,  98. 
contaminating  streams,  etc.,  266,  267. 

SATISFACTION- 

clause  in  drilling  contract,  96. 

SCAFFOLD  - 
injury  on,  130. 

SCHOOL  LANDS  — 

lease  of,  3 ;  statutes,  239. 

SCIENTIFIC  CLASSIFICATION  — 
of  oil  and  gas,  6. 

SECOND  LEASE  — 
effect  of,  13,  30,  40. 

SKLF-TRANSMISSION  - 
by  oil  and  gas,  9. 


376  INDEX 

SELLING  — 

cost  of  by  illegal  possessor,  21. 

SEPARATE - 

interest  of  owners  of  surface  and  minerals,  17. 
property,  32. 

SEQUESTRATION  - 
in  general,  124. 
by  co-owner,  124. 
ex-officio  by  court,  124. 
after  appeal,  124. 
as  incidental  demand,  124. 
equitable,  124. 
jurisdiction,  125. 
bonding,  125. 
ancillary,  125. 
holds  until  judgment,  125. 
conventional,  126. 
accounting  for,  126. 
duty  of  judge,  127. 

SERIOUS  CONSIDERATION  — 
required  for  lease,  44,  45,  46. 

SERVITUDE  — 

mineral  rights  as,  15,  78. 

SEVERANCE  - 

of  elements  of  ownership,  13,  14. 
tax,  133;  statute  153;  constitution,  270. 

SEVERALTY—  (see  CO-OWNERS). 
ownership  in,  33. 

SIGNATURES  - 
to  lease,  26,  27. 

SHALLOW - 

wells,  as  compliance  with  lease,  91. 
strata,  protection  of  in  Claiborne,  277,  281. 

SHERIFF - 

sale  by,  affect  on  lease,  40. 
duties  in  re  sequestration,  126. 


INDEX  377 


SHIPPERS—  (see  TRANSPORTATION). 
over  pipe  lines,  105. 

SHORE  LINES  — 
in  general,  16. 

SHREVEPORT  — 
fields,  2. 

SILENCE  — 

of  lawmakers  as  to  oil  and  gas,  3. 
estoppel  by,  60,  84,  89. 

SILT  — 

in  general,  15. 

SITUS  OF  OIL  AND  GAS  - 
in  general,  9. 
rules  relating  to  minerals  with  fixed,  11. 

SIZE- 

of  casing  to  be  used,  276. 

of  hole,  under  drilling  contract,  97. 

SLANDER  OF  TITLE  — 

lessee  may  claim  damages  for,  31. 
in  general,  120. 

SLOPES,  etc.  - 
reference  to,  8. 

SLUSH  PIT- 

to  be  provided,  273. 

SOIL  — 

ownership  of  13. 

sale  of  with  reservation,  14,  15. 

sale  of  as  carrying  minerals,  24. 

"SOLE  AND  ONLY"  CLAUSE  — 
in  lease,  54. 

SOLID  MINERAL  LEASES - 
compared  to  oil  and  gas,  26. 


378  INDEX 

SPECIFIC  PERFORMANCE  — 
tender  of  performance,  66. 
in  general,  117. 

where  parties  agree  to  stay  out  of  court,  118. 
and  damages,  118. 

SPECIFIC  OIL  AND  GAS  - 
sale  as  covering,  14. 

SPECULATION  - 
in  leases,  4. 
on  purchase  of  oil,  102. 

STAGE  OF  WATER - 

affecting  ownership  of  lands,  16. 

STALE  CLAIMS  — 
to  oil  lands,  24,  116. 

STANDARD  PRESSURE - 
.  base  of,  285. 

STARTING  OPERATIONS  - 
in  general,  27. 

STATE  LANDS—  (see  PUBLIC  LANDS). 
minerals,  15. 

lease  of,  31 ;  statutes,  240,  243. 
lessee,  injunction  against,  127;  statute,  244. 

STATUS  OF  OIL  AND  GAS  — 
in  general,  6. 

STATUTE  OF  LIMITATIONS—  (see  PRESCRIPTION). 
of  mineral  rights,  15,  76. 

STATUTES—  (see  LAWS). 

STEAMER  - 

breach  of  contract  to  carry  oil  by,  107. 

STIPULATIONS  — 
in  re  oil  and  gas,  3. 


INDEX  379 


STOCK —  (see  CORPORATIONS). 
common,  oil  as,  103. 
capital,  paying  dividends  out  of,  144. 
blue  sky  law,  146. 

STORAGE - 

necessary  for  development,  84,  103. 

piping,  and  transportation,  103. 

oil,  103. 

reasonableness  of  charges  for,  103,  104. 

mixing  oil  in,  103,  104. 

loss  while  in,  103. 

of  oil,  as  common  stock,  103. 

making  common  stock,  103. 

in  earthern  tanks,  104. 

negotiable  receipts  for,  107. 

costs,  under  sequestration,  126. 

of  explosive  oils,  132. 

statute  in  re,  168. 

of  gasoline,  131. 

STREAMS  - 
navigable,  15. 
accretions,  16. 
crossing  by  pipe  lines,  105. 

STRATA  - 

confining  gas  to,  271. 

producing  oil  and  gas  from  different,  273. 

to  be  sealed  off,  274. 

protecting  shallow,  in  Claiborne,  277,  281. 

STREETS  - 

use  of  for  pipe  lines,  139. 

SUBSTANCES  - 
unexpected,  86. 

SUBSTANTIAL  CONSIDERATION  — 
for  lease,  44,  46. 

"SUCCESS"  — 
well  as,  93. 


380  INDEX 

SUCCESSION  — 

acceptance  of  as  affecting  lease,  33,  40. 
obligations  of  heirs,  41. 
sale,  as  terminating  lease,  69. 

SUFFICIENCY  — 

of  development,  87. 

SUIT —  (see  PROCEDURE). 

development  pending,  under  agreement,  85. 

SULPHUR  INDUSTRY  ~ 
reference  to,  1. 
like  minerals  in  place,  14. 
license  tax  on,  133,  163,  270. 

SUMMARY  TRIAL  — 
of  oil  and  gas  cases,  150. 

SUPERVISION  — 

of  lease  by  lessee,  29. 

SURFACE  — 

oil  and  gas  must  be  brought  to,  11. 

rights  of  owner  of,  12. 

owner  of,  12. 

right  of  use  of,  14,  84. 

sale  of  with  reservation,  14. 

use  of,  subject  to  police  power,  23. 

lessor,  legal  possessor  of,  28. 

rights  of  lessee  to,  29. 

SURVEYS  — 

Government,  17. 

SUSPENSION  — 

of  payments  and  rentals,  64. 

SWABBING  — 
well,  286. 

SWAMP  LANDS  — 
in  general,  15. 

SWIVEL  — 

defective,  128. 


INDEX  381 

T. 


TANK  — 

cars,  provisional  sale  of,  107. 

mortgage  of,  107. 

storage  in  earthen,  104. 

lien  on,  99. 

explosion  in  car,  129. 

loss  of  oil  from  failure  to  close  valve  on  car,  107. 

injury  while  building  car,  130. 

TARIFFS  — 

of  pipe  lines,  105. 

TAXATION  — 

assessments,  5,  134. 

exemptions,  6,  7,  136,  269. 

in  general,  132. 

constitutional  provisions,  132. 

severance,  133;  statute,  153,  270. 

property,  134. 

license,  136. 

manufacturers  of  gas,  141. 

gasoline,  160. 

constitutional  provisions,  269. 

TAXPAYERS  — 

rights  of  in  re  use  of  streets  by  gas  company,  139. 

TECHNICAL  AND  SCIENTIFIC  — 
classification  of  oil  and  gas,  6. 

TEN  YEAR  PRESCRIPTION  — 
of  mineral  rights,  15,  76. 

TENANTS  IN  COMMON  —  (see  CO-OWNERS). 
owners  of  surface  and  minerals  are  not,  17. 

TENANT—  (see  LESSEE). 
lessee  as,  30. 


382  INDEX 

TENDER  — 

in  general,  65. 

of  payments,  65. 

of  performance,  65,  66. 

failure  of  65. 

refusal  to  accept,  66. 

refusal  under  nudum  pactum,  66. 

TERM- 

in  general,  37. 

lease  must  have,  37. 

perpetual,  37. 

need  not  be  expressed  in  words  of  time,  37. 

must  be  definite,  38. 

paying  quantities  clause,  38. 

conditioned  on  production,  38. 

extension  of  by  consent,  38. 

extended  where  lessor  prevents  development,  39. 

operations  must  be  begun  within,  71. 

TERMINATION  — 
in  general,  69. 

of  rights  of  lessor  by  sale  of  fee,  28. 
consideration  for,  43. 
for  failure  to  make  payments,  62. 
by  effect  of  law,  69. 
by  succession  sale,  69. 
by  foreclosure  sale,  69. 
by  partition  sale,  69. 
by  forfeiture,  70. 

by  failure  to  comply  with  terms,  70. 
cancellation  of  lease,  149. 

TERMS  OF  CONTRACT - 
compliance  with,  27,  29. 
failure  to  comply  with,  70. 

TERMS  — 

employed  in  contract,  35. 


INDEX  383 


THIRD  PERSONS  — 
in  general,  39. 

not  affected  by  acts  of  ex-lessee,  30,  39. 
no  registry  of  action  under  lease  necessary,  39. 
may  rely  on  record,  39,  40. 
heirs  take  subject  to  acts  of  ancestor,  40. 
take  subject  to  prior  lease,  40. 
not  affected  by  actions  after  acquisition,  40. 
not  affected  by  unrecorded  instrument,  41. 

TIDEWATER  LANDS  - 
in  general,  15. 

TIMNER- 

duty  of  lessor  and  lessee  as  to,  28. 

TIME- 

allowed  to  remove  from  abandoned  well,  72. 

for  development,  85. 

as  essence  of  contract,  85. 

between  cessation  and  resumption  of  operations,  93. 

TITLE  — 

to  minerals  as  real  right,  11. 
dismemberment  of,  13. 
to  specified  oil  and  gas,  14. 
of  Government,  15. 
in  expectancy,  16. 

to  minerals  not  proved  by  parol,  23. 
to  minerals,  how  acquired,  23. 
bad,  24. 

of  person  alienating  or  leasing,  24. 
lessor  necessary  party  to  suit  affecting,  28. 
lessor  who  has  parted  with,  30. 
lessee  cannot  contest  or  change  lessor's,  30. 
lessee  as  party  to  suit,  30. 

lessee  who  takes  two  leases  must  pay  on  both,  30. 
lessee  may  claim  damages  for  slander  of,  31. 
record  governs,  40. 
warranty,  75. 

questions  of  the  possessory  action,  119. 
slander  of,  120. 


384  INDEX 

TONGS  — 

defective,  129. 

TOP  LEASE - 

lessor  granting,  13,  30. 

takes  precedence  over  prior  void  lease,  40. 

warranty,  76. 

TRANSFER— (see  ASSIGNMENT,  SALE). 

TRANSPORTATION  - 

cost  of  by  illegal  possessor,  21. 

of  oil,  103. 

tank  cars,  106. 

damages  for  failure  of,  107. 

TRESPASS—  (see  POSSESSORS). 
in  general,  21. 
injunction  against,  22,  120. 
settler  on  government  lands,  22. 

TRIAL — (see  PROCEDURE). 

summary,  of  oil  and  gas  suits,  150. 

TRUSTS  AND  TRUSTEES  - 
in  general,  147. 

TUBING—  (see  CASING,  PIPING). 
line  on,  99. 

U.  ' 

UNEXPECTED  SUBSTANCES  - 
in  general,  1,  86. 
salt  and  sulphur,  87. 
casinghead  gasoline,  87. 

UNIFORM  WAREHOUSE  RECEIPTS - 
for  oil,  1071 ;  statute,  168. 

UNILATERAL  CONTRACT - 

considered  as  containing  potestative  condition,  59. 

UNDIVIDED  INTEREST— (see  CO-OWNERS). 
lease  of,  33. 


INDEX  385 

USURPATION  — 

of  rights  of  lessee  and  lessor,  13,  21. 
damages  for,  73. 

USUFRUCTUARY  — 
in  general,  19. 
extension  of  lease  by,  20. 
development  by,  20. 

UNLAWFUL  POSSESSORS— (see  POSSESSORS). 

UNDERGROUND  WORKINGS  — 
reference  to,  8. 

UNDIVIDED  INTEREST— (see  CO-OWNERS). 
in  minerals,  17,  33. 

UNION  — 

drilling  in,  276,  283,  284. 
use  of  gas  in,  288. 

UNREPORTED  DECISION  — 

Watkins  v.  Atlanta  &  Shreveport  Oil  &  Gas  Co.,  302. 

V. 

VAGRANT  CHARACTER  — 
of  oil  and  gas,  9. 

VALUE - 

deductions  from,  21. 

awaiting  enhacement  of  before  making  claim,  24. 

of  consideration,  45. 

when  determined  in  action  for  lesion,  116. 

of  oil  properties,  117. 

of  property  transferred  to  corporations,  145. 

as  fixing  license  tax,  270. 

VALVE - 

leaky,  107. 

VIS  MAJOR-  I 

as  excuse  for  delay,  81. 
loss  of  oil  by  forfeiture  event,  103. 


386  INDEX 

VOID  LEASE  — 

top  lease  takes  precedence  over,  40. 

W. 

WANT  OF  CONSIDERATION  — 
of  lease,  44. 

WAREHOUSE  RECEIPTS - 
for  oil,  107. 

WARRANTY - 
in  general,  75. 
in  lease,  75. 
where  portions  of  title  bad,  75. 

WASTE  - 
lands,  5. 
oil,  97. 

statute  in  re,  170,  173,  176,  181. 
Conservation  rules,  271. 
methods  of  preventing,  272. 
disposing  of,  from  wells,  278. 

WAY  — 

right  of —  (see  RIGHT-OF-WAY). 

WATERS - 
mineral,  7. 

analogy  to  oil  and  gas,  10. 
accretions,  16. 

emergency  of  banks  from,  16. 
high  mark,  16. 

contamination  of,  17,  97;  statutes,  266,  274,  278. 
Shreveport's  supply,  17. 

WELLS - 

exhaust  surrounding  territory,  9. 

bored  by  owner.  12. 

drilling  before  signing  lease,  26,  27. 

royalty  due  to  owner  of  land  on  which  located,  31. 

mean  "hole,"  92. 

offset,  94. 


INDEX  387 


WELLS — (CONTINUED). 

reducing  size  under  contract,  97. 

lien  on,  98. 

accessories  to,  99. 

sale  of  output  of,  101. 

wild,  170,  173,  176,  177,  180,  181. 

log  required,  272. 

WHOLE  - 

instrument  must  be  construed  as,  36. 

WIFE —  (see  HUSBAND  AND  WIFE). 

WILDCAT - 

explorations,  1. 
consideration  for  lands,  45. 

WILD  WELLS  — 

statutes,  170,  173,  176,  177,  180,  181. 

WILL- 

lease  revocable  at,  44. 

exercise  of  under  potestative  condition,  48. 

WORDS  - 

used  in  describing  contact,  36. 

WORK- 

lien  for,  98. 

WORKINS,  UNDERGROUND  — 
reference  to,  8. 

WORKMEN'S  COMPENSATION  — 
reference  to,  127. 

\VRIT  (see  INJUNCTION). 
of  possession,  17,  121. 
of  sequestration,  124. 

WRITTEN  EVIDENCE - 
when  necessary,  1 1 . 

WRITTEN  INSTRUMENT  - 
construction  of,  36. 
construed  against  party  writing,  36. 


